MARKET OVERHANG

A theory stating there is a booming of selling pressure on certain stocks at certain times. It is the result of combined result of sales and vigorous wish to sell among those who still hold the instrument but fear that selling it may experience further downfall. It can last for weeks, months, or even longer, depending on the liquidity of the stock in general. It can pertain to trading in one security, but is applicable to huge market areas such as the entire sector.