Buzzword: Market capitulation
Life is hard enough without having to decipher everything. This week, we're waving the white flag with "market capitulation."
Finance (iStockPhoto)
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.
