The sudden mass selling of a stock or other asset because the prevailing opinion is that the security or asset is overvalued (the rapid and concentrated sale of an asset thought to be overvalued by the market. It is performed by investors and speculators who believe that prices are overstated and that a period of fall in price is forthcoming). The distinction from panic selling is usually seen in the fact that in panic selling, assets are sold off quickly because liquidity is urgently needed. In the case of massive sales, on the other hand, corresponding expectations regarding the price of the asset are decisive for the selling pressure. However, the terminology in German and also in English is not consistent. – See equity bubble, bear market, cyclical, bubble, boom-bust cycle, stock market fever, crash, euphoria phase, liquidity squeeze, milkmaid bull market, rally, feedback loop, runup, sell out, speculative bubble, free rider, tulip crash, overload, asset bubble, recovery.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/