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What Does Capitulation Mean?

April 26, 2017capitulation dictionary Education glossary invest Investing Investment investor mean tutorials

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What Does Capitulation Mean?

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A military term. Capitulation refers to surrendering or giving up. In the stock market, capitulation is associated with “giving up” any previous gains in stock price as investors sell equities in an effort to get out of the market and into less risky investments. True capitulation involves extremely high volume and sharp declines. It usually is indicated by panic selling.