Panic Buying

Panic Buying

A type of behavior marked by a rapid increase in purchase volume as the price of a good or security increases. Panic buying has the effect of reducing the supply of the good or security, while at the same time driving the price up even higher. This type of behavior is often the result of a feeling of being "left out" if a purchase is not made immediately.

Panic buying may result from a number of different events. A public's panic buying of a good, such as water or bread, may come as the result of news indicating impending bad weather, as consumers fear a shortage of items as a result of weather-related scarcity.

In the stock market, an investor may see a rapid increase in the price of a security and buy shares out of fear that they will miss out on continued increases. This purchase behavior often results in a suspension of fundamental evaluation, which can result in losses once the market calms down.


Investment dictionary. . 2012.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • Panic buying — is an imprecise common use term to describe the act of people buying unusually large amounts of a product in anticipation of or after a disaster or perceived disaster, or in anticipation of a large price increase or shortage, as can occur before… …   Wikipedia

  • panic buying — UK US noun [uncountable] a situation in which large numbers of people buy a product in large quantities because they are worried there is not enough of it available Thesaurus: activity of shoppinghyponym …   Useful english dictionary

  • panic buying —   Il panic buying è un mercato con alta volatilità in cui gli ultimi compratori, rimasti fuori fino a quel momento, cercano di entrarvi a tutti i costi, facendo aumentare ulteriormente i prezzi. Il panic buying è l ultimo momento di una crescita… …   Glossario di economia e finanza

  • panic-buying — panˈic buying noun • • • Main Entry: ↑panic …   Useful english dictionary

  • panic buying — noun The buying of commodities or other assets earlier than normal, or in quantities greater than normal, because of rumours of coming shortages or price rises …   Wiktionary

  • panic buying — UK / US noun [uncountable] a situation in which large numbers of people buy a product in large quantities because they are worried there is not enough of it available …   English dictionary

  • panic buying — / pænɪk ˌbaɪɪŋ/ noun a rush to buy something at any price because stocks may run out …   Marketing dictionary in english

  • panic buying — / pænɪk ˌbaɪɪŋ/ noun a rush to buy something at any price because stocks may run out …   Dictionary of banking and finance

  • panic buying or selling — Rapid trading of stocks or bonds in high volume in anticipation of sharply rising or falling prices, usually after unexpected news is released. Bloomberg Financial Dictionary …   Financial and business terms

  • panic — ▪ I. panic pan‧ic 1 [ˈpænɪk] noun [countable, uncountable] 1. a feeling of great fear and anxiety that makes you act without thinking: • The stock market crash left an air of panic from which many individual investors still haven t recovered. •… …   Financial and business terms

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”