Sell-off

A sell-off refers to a situation in financial markets where a large number of investors rapidly sell their assets, such as stocks or bonds, usually due to rising concerns about economic conditions or specific market factors. This wave of selling can lead to a significant drop in asset prices as supply surpasses demand. Sell-offs can happen for various reasons, including negative news, economic downturns, or changes in interest rates, and they often create increased volatility in the markets. Investors may react to the sell-off by reassessing their strategies and risk tolerances.