The act of giving up on a stock often characterized by panic selling.
the act of surrendering (under agreed conditions); "they were protected until the capitulation of the fort"
an agreement for the delivery of a besieged place or forces divided in the field into the hands of the enemy
In the market's equivalent of waving the white flag of surrender, capitulation refers to the act of giving up. In the stock market, capitulation occurs during times of very high volumes and panic selling. With stocks, capitulation is seen as the true bottom of the stock price,as any investors who were interested in a particular stock have given up and sold out, sometimes due to margin calls. On the bright side, the event is seen as a turning point -- theoretically, there's nowhere to go but up after hitting rock bottom.
Capitulation (Lat. capitulum, a little head or division; capitulare, to treat upon terms), an agreement in time of war for the surrender to a hostile armed force of a particular body of troops, a town or a territory.
Capitulations (from Lat. caput, or its Low-Latin diminutive capitulum, as indicating the form in which these acts were set down in chapters ; the Greek equivalent, cephaleosis, is occasionally used in works of the 17th century) are a special kind of treaties, unilateral contracts granted by a state and conferring the privilege of extra-territorial jurisdiction within its boundaries on the subjects of another state.