Legal Definitions - sell-off

Definition: A sell-off is a period of time when there is a lot of pressure to sell stocks, which causes the prices to fall in the stock market.

Example: During a sell-off, investors may panic and sell their stocks quickly, causing a rapid decline in the market. For example, if a company reports bad news, such as lower earnings than expected, investors may start selling their shares, causing a sell-off.

Explanation: A sell-off is a situation where many investors are trying to sell their stocks at the same time, causing a drop in the stock market. This can happen for many reasons, such as bad news about a company or a general feeling of uncertainty in the market. When investors start selling their stocks, it can create a domino effect, where other investors start selling as well, causing the prices to fall even further. This can be a stressful time for investors, as they may see the value of their investments decrease rapidly.