Capitulation is the word which is used in the context of stock market, it refers to a situation where everybody is panicking and selling their stocks a throwaway prices. Capitulation typically happens at the end of a bear market as people tend to act irrationally and thinks that prices will keep going down which makes a vicious circle because people don’t want to buy as they think will get stocks at lower rates and sellers want to sell at any cost because of fear that prices will drop further.

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