Capitulation Defined

There tends to be a lot of talk about “investor capitulation” when stocks continue to tank. But what is meant by capitulation in Wall Street terms and what does it mean for future stock trends? This article will discuss both.

Capitulation is defined in the American Heritage Dictionary as the following:

capitulation (n)

1. The act of surrendering or giving up. Surrender.
2. A document containing the terms of surrender.