Panic buying or selling involves a flurry of transactions characterized by high volume. This phenomenon occurs in response to news events that hint at sharply rising or falling prices, often leaving investors with inadequate time to assess the fundamentals of individual stocks or bonds.
A sell-off refers to the rapid selling of securities due to underlying panic or to avoid further declines in prices, often resulting in a sharp decline in the market.
A selling climax refers to a sudden plunge in security prices when investors, driven by panic, simultaneously decide to dump their holdings. This event can sometimes signal the bottom of a bear market, after which the market may start to rise.
