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Latest post Thu, Dec 4 2008 6:17 AM by jamesglick. 2 replies.
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Vocabobobo  +  603875 Wed, 03 Dec 08 10:48 PM
Hello. Could anyone tell me what "shareholder run" means please? I found the phrase in a news article discussing the current state of American economy (and what Barack Obama may do about it when he is a President). The phrase was in the following sentence:
...and the Federal Goverment was forced to rush to halt a shareholder run on the giant banking conglomerate CItigroup.

Thanks a lot in advance.
Joined on Mon, Feb 19 2007
Canada
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Clive  +  603940 Wed, 03 Dec 08 11:56 PM
Hi,
I believe it's where a lot of the shareholders panic and start to sell their shares. This makes the share price go down.

Best wishes, Clive



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El tango argentino es un pensamiento triste que se puede bailar (The tango argentino is a sad thought which can be danced) Enrique Santos Discépolo
jamesglick  +  604267 Thu, 04 Dec 08 06:17 AM
Clive is right. Think of it as a mass of people literally running to a bank to withdraw their money because they think the institution will financially collapse. Similarly, a shareholder run is a unusually large group of shareholders wishing to get their investments sold before they become worthless, the act of which actually causes the investment to become worthless, especially if enough shareholders perceive the corporation they have invested in is unstable and about to go under.
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James Glick Author of TalkTrain
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