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When does capitulation occur?

Capitulation often occurs at the end of a panic selling cycle. During adverse market conditions, such as a period of declining stock prices or high volatility, investors may sell stock they planned to hold long-term to avoid losing more money.

What is capitulation in finance?

Capitulation in finance describes the dramatic surge of selling pressure in a declining market or security that marks a mass surrender by investors. The resulting dramatic drop in market prices can mark the end of a decline, since those who didn't sell during a panic are unlikely to do so soon after.

What is capitulation in stock market?

With regard to financial markets, capitulation is when even confident and risk-tolerant investors throw up their arms and give up on their investments in fear, driving panic selling. This often coincides with a market bottom, at least short term. What Is Capitulation in Stocks?

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