[1] 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.
[2] Shakeouts can often occur after an industry has experienced a period of rapid growth in demand followed by overexpansion by manufacturers.
[citation needed] Large, diversified companies are often most able to endure a weak business climate and can benefit from shakeouts.
[citation needed] A shakeout of investors and internet businesses occurred during the dot-com bubble.
[citation needed] This economics-related article is a stub.