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Vocabobobo Posted 18 years ago
Vocabulary

Shareholder run....

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.
  

Top answer

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

— Clive

  • 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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2 Answers
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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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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 shareho
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