Market Overhang

Market overhang is an observational theory which states that certain stocks may show selling pressure at certain times. This typically occurs when a large block of stock is rumored or expected to be sold. During a market overhang, sellers are afraid to sell because they fear selling may drive the stock’s price down, and buyers are afraid to buy, since they are expecting large amounts of block to be sold. This situation can last for weeks or months until the large block of stock is sold.

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