Wall Street Lingo: Capitulation
Thursday, March 20th, 2008I’ve been hearing the term “capitulation” being thrown around a lot lately on many of the talking heads programs. In context, it’s used like this: “…we won’t see the bottom of the market until we see capitulation”.
So what exactly does that mean?
In street sense, capitulation means to surrender or give up. You hear it in military history discussions frequently in terms of a surrender. However, in Wall Street sense, it means to “give up” any previous gains as investors sell equities in an effort to get out of the market and into less risky investments.
You’ll see capitulation set …
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