Shakeout is a term used in business and
economics
Economics () is the social science that studies the production, distribution, and consumption of goods and services.
Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analy ...
to describe the
consolidation
Consolidation may refer to:
In science and technology
* Consolidation (computing), the act of linkage editing in computing
* Memory consolidation, the process in the brain by which recent memories are crystallised into long-term memory
* Pulmon ...
of an
industry or sector, in which businesses are eliminated or
acquired through competition. It may also refer 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.
[Investopedi]
Shakeout
Retrieved on July 25, 2007
Shakeouts can often occur after an industry has experienced a period of rapid growth in demand followed by overexpansion by manufacturers. Large, diversified companies are often most able to endure a weak business climate and can benefit from shakeouts. A shakeout of investors and internet businesses occurred during the
dot-com bubble
The dot-com bubble (dot-com boom, tech bubble, or the Internet bubble) was a stock market bubble in the late 1990s, a period of massive growth in the use and adoption of the Internet.
Between 1995 and its peak in March 2000, the Nasdaq Comp ...
.
References
Mergers and acquisitions
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