What is Sell-Off?

A sell-off is a sudden, high-volume sale of a security or other asset which typically reduces the price of the relevant asset, at least in the short term. While there are a variety of reasons for why a sell-off may occur, in most instances sell-offs take place as a result of widespread market panic, either due to negative news or a black swan event, or coordinated market manipulation initiated by institutional investors or "whales."