ca·​pit·​u·​la·​tion | \kə-ˌpi-chə-ˈlā-shən \

Definition of capitulation 

1 : a set of terms or articles (see article sense 1c) constituting an agreement between governments

2a : the act of surrendering or yielding the capitulation of the defenders of the besieged town

b : the terms of surrender

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Examples of capitulation in a Sentence

her sudden capitulation surprised everyone; she usually debated for hours

Recent Examples on the Web

The simple truth is this: Being charged with a federal crime is the start of a nightmarish experience that usually leads to some form of capitulation. Michael Mccann,, "Why Maryland Receiving FBI Subpoenas Should Worry Other College Programs, Basketball Players," 7 July 2018 The ever-flattening interest-rate curve -- and signs of inversion -- underscores the market’s capitulation on the Fed’s indicative tightening path. Sid Verma,, "Bond Bulls Rejoice: There's Growing Evidence of Peak Bear Market," 19 Apr. 2018 Richard Wright was not alone among critics who saw Hurston’s celebration of the black folk as a capitulation to racist stereotypes of black people. Emily Bernard, The New Republic, "Zora Neale Hurston’s drive to tell the story of the slave trade’s last survivor," 19 June 2018 There was, rather, a route to the final that was as straightforward as could be, and a semifinal England should have had won by halftime before a second-half capitulation. Jonathan Wilson,, "England's World Cup Run, Southgate Represent More for a Nation in Political Upheaval," 12 July 2018 Trump tried to walk back his seeming capitulation to Putin the next day, but not very convincingly. Chas Danner, Daily Intelligencer, "Report: White House Planning Trump-Putin Summit," 2 June 2018 By the time the final offensive began, Difdaa began calling for rebel capitulation and set up peace talks through the offices of Assad's electricity minister, Mohammad Zuhair Kharboutli, whose family hails from Kafr Batna., "Assad's divide-and-conquer strategy is working," 28 Mar. 2018 But that rare moment of public capitulation was brief from the president, who laced his remarks at a rally in Minnesota that night with hardline immigration rhetoric that continued Friday. Jonathan Lemire And Darlene Superville,, "Dismissing 'phony stories of sadness' in immigration crisis, Trump meets with 'angel families'," 23 June 2018 Many regular Greeks are also unhappy about the deal, calling it a national capitulation and betrayal. Niki Kitsantonis,, "Macedonia signs historic deal with Greece on name dispute," 17 June 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'capitulation.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of capitulation

1535, in the meaning defined at sense 1

History and Etymology for capitulation

see capitulate

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The first known use of capitulation was in 1535

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More Definitions for capitulation



Financial Definition of capitulation

What It Is

Capitulation occurs when investors attempt to exit an investment or market so quickly that they are willing to surrender any and all gains to do so. Panicked behavior often causes a capitulation, and investors may attempt to liquidate most or all of their holdings in these circumstances.

How It Works

A capitulation frequently occurs after a security or a market has endured a long, downward slide in value; it is the final act of hitting bottom. There are four general signs a capitulation is occurring or has occurred.

Significant Changes in Trading Activity
Capitulations commonly involve unusually high trading volumes and price declines, typically over one or two trading days (although they can last longer).

High Levels of Cash Held by Mutual Funds
The presence of large numbers of investors attempting to exit the market by selling their Mutual Fund shares frequently compels mutual funds to hold high levels of cash in order to meet those demands.

Unusually High Derivatives Activity
Large increases in put purchases or option volatility indexes indicate that investors are either strongly betting against a market increase or are rapidly attempting to hedge against expected price declines.

Continued and Profound Negative Investor Sentiment
Capitulations are most frequently attributed to investors emotionally "giving up," rather than to external forces like changes in the fundamental outlook of a company. This negative investor sentiment may be the cause (or effect) of reaction and opinion communicated by the media, analysts, traders, or other investors.

Why It Matters

There is no guaranteed way to spot capitulation before it happens or while it is happening. However, because capitulations generally reflect the final bottoming-out of a security or market, prices typically increase after a capitulation. Thus, capitulations can also signal the beginning of a turnaround.

Source: Investing Answers

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