Shakeout is a term used in business and
economics
Economics () is a behavioral science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services.
Economics focuses on the behaviour and interac ...
to describe the
consolidation 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 (or dot-com boom) was a stock market bubble that ballooned during the late-1990s and peaked on Friday, March 10, 2000. This period of market growth coincided with the widespread adoption of the World Wide Web and the Interne ...
.
References
Mergers and acquisitions
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