What is Panic Buying?
Panic buying refers to the purchase of a stock immediately after a sudden, substantial price increase.
How Does Panic Buying Work?
Why Does Panic Buying Matter?
Investors may buy stock for a number of reasons. Fear of being left out of the next big thing, however, is not the best reason. Panic buying usually is the result of the herd instinct among some investors. While there may be some gains on the residual increase in the price spike, it is often too little, too late.
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