a b c d e f g h i j k l m n o p q r s t u v w y z search

TeachMeFinance.com - explain Panic Panic -- A series of unexpected cash withdrawals from a bank caused by a sudden decline in depositor confidence or fear that the bank will be closed by the chartering agency, i.e. many depositors withdraw cash almost simultaneously. Since the cash reserve a bank keeps on hand is only a small fraction of its deposits, a large number of withdrawals in a short period of time can deplete available cash and force the bank to close and possibly go out of business. historic definition... Panic -- In Wall Street a panic is a time of great alarm when there is a rush to sell securities with a ruthless sacrifice of values. Also see Black Friday; also see Grant & Ward panic; also see Jay Cooke panic. Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.