A rapid increase in sales orders for a particular investment, which pushes down its stock price. This can cause a spiraling effect or "vicious cycle" in which investors see a rapidly decreasing price as a sign to get out of a particular investment, which further depresses the price and prompts more investors to sell their shares. This type of selling is often prompted by a fear of loss rather than an understanding of the issue at hand. A stock exchange may employ a circuit breaker strategy in order to halt panic selling.
Related information about panic selling:
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- Panic Selling - Financial Dictionary - The Free Dictionary
The rapid selling of a security by a large number of investors. This increases the supply of the security available for sale while leaving constant or decreasing the ...