sell-off

noun

\ ˈsel-ˌȯf

Definition of sell-off

(Entry 1 of 2)

: a usually sudden sharp decline in security prices accompanied by increased volume of trading

sell off

verb

sold off; selling off; sells off

Definition of sell off (Entry 2 of 2)

intransitive verb

: to suffer a drop in prices

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Dictionary Entries near sell-off

sell one's soul (to the devil)

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Time Traveler for sell-off

The first known use of sell-off was in 1976

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More Definitions for sell-off

sell-off

noun

Financial Definition of sell-off

What It Is

A sell-off is the rapid selling of a security leading to a sharp decline in its price.

How It Works

When a substantial number of shareholders sell a specific stock, it is called a sell-off. Generally speaking, prospective buyers sit on the sidelines until the conditions that caused the sell-off to occur are over. So because there are few buyers and many sellers, the stock price declines, sometimes dramatically.

A sell-off may be caused by an event within the company, like a report of lower than expected earnings. A sell-off can also be caused by external forces. For example, a spike in grain prices may trigger a sell-off in food stocks because of the increases in raw materials costs.

Why It Matters

Sell-offs are important market events. Savvy investors should try to sell a security well before a dramatic sell-off so as not to be the last one holding the stock. At the same time, investors can take advantage of sell-offs, especially broad market sell-offs, to buy fundamentally goods stocks at very affordable prices.

Source: Investing Answers

sell-off

noun