Panic selling is a large-scale selling of an investment that causes a sharp decline in prices. Specifically, an investor wants to sell an investment with little regard to the price obtained. The sale is problematic because the investor is reacting to emotion and fear, rather than evaluating the fundamentals.[1]
Today, most major stock exchanges use trading curbs to throttle panic selling, provide a cooling period for people to digest information, and restore some degree of normality to the market.
- ^ Ganti, Akhilesh. "Panic Selling Definition". Investopedia.