Behavioural Finance

Panic Selling

Definition

What is Panic Selling?

Selling rapidly because of fear during a market decline.

Example in practice

How This Looks in Practice

The investorA person or organisation that commits capital with the expectation of a financial return. exits a diversified portfolioThe complete collection of investments owned by an investor or managed under one mandate. near the bottom of a crash.

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Related Terms

Behavioural Finance

Loss Aversion

The tendency to feel losses more strongly than equivalent gains.

Behavioural Finance

Overconfidence Bias

The tendency to overestimate one's knowledge, forecasting ability, or control.

Behavioural Finance

Confirmation Bias

The tendency to seek or interpret information that supports an existing belief.

Sustainable Investing

ESG Investing

Incorporating environmental, social, and governance factors into investment analysis or ownership.

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