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{{For|the earthquake safety exercise|Great Southern California ShakeOut}} |
{{For|the earthquake safety exercise|Great Southern California ShakeOut}} |
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”’Shakeout”’ is a term used in business and [[economics]] to describe two things: |
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”’Shakeout”’ is a term used in business and [[economics]] to describe a period when an [[Industry (economics)|industry]] or sector goes through a period of expansion followed by [[Consolidation (business)|consolidation]].<ref name=”Halton”>{{cite web |last1=Halton |first1=Clay |title=Understanding Shakeouts: Stock Trading and Industry Trends Explained |url=http://www.investopedia.com/terms/s/shakeout.asp |website=[[Investopedia]] |access-date=July 25, 2007}}</ref> In this case, stronger companies user thier capital reserves to [[Mergers and acquisitions|acquire]] weaker companies that have overextended themselves.<ref name=”Halton”/> It may also refer to a situation in which many investors exit their [[Position (finance)|positions]], often at a loss, due to uncertainty in the [[Financial market|market]] or recent bad news circulating around a particular security or industry.<ref name=”Halton”/> |
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an industry a period of rapid growth followed by . <ref>{{Cite book |last=Scott |first=David L. |title=Wall Street Words |publisher=Houghton Mifflin |date=1998 |isbn =0-395-43747-4 |url-access=registration |url=https://archive.org/details/wallstreetwords00scot |accessdate=July 25, 2007}}</ref> [[ ]].<ref name=”Halton”/> |
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Shakeout also refers to a situation in which many investors exit their [[Position (finance)|positions]], often at a loss, due to uncertainty in the [[Financial market|market]] or recent bad news circulating around a particular security or industry.<ref name=”Halton”/> A shakeout of investors and internet businesses occurred during the [[dot-com bubble]].<ref name=”Halton”/> |
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==References== |
==References== |
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Latest revision as of 13:05, 21 December 2025
Shakeout is a term used in business and economics to describe two things:
Shakeout is when an industry goes through a period of rapid growth and overexpansion followed by consolidation.[1][2] When this hapens, stronger companies user thier capital reserves to acquire or eliminate weaker companies that have overextended themselves.[1] Large, diversified companies are often most able to endure a weak business climate and can benefit from shakeouts.[2]
Shakeout also refers to a situation in which many investors exit their positions, often at a loss, due to uncertainty in the market or recent bad news circulating around a particular security or industry.[1] A shakeout of investors and internet businesses occurred during the dot-com bubble.[1]
