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Buzzword: Market capitulation

Marketplace Staff Jan 25, 2008
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Buzzword: Market capitulation

Marketplace Staff Jan 25, 2008
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Panic! brings us this week’s Marketplace Money Buzzword: “Market capitulation.”

In military terms, capitulation means to surrender. Market capitulation refers to a surrender… of your money!

That’s when stock prices fall so low, investors sell their stocks at any price.

This week, millions of overseas investors — spooked by a possible U.S. recession — sold off stocks fast. The global fear caused one of the most volatile weeks in history.

And although many markets made a rebound by week’s end, investors learned that sometimes, surrender doesn’t guarantee your safety.

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