shakeout

{{For|the earthquake safety exercise|Great Southern California ShakeOut}}

Shakeout is a term used in business and economics to describe the consolidation of an industry or sector, in which businesses are eliminated or acquired through competition.{{Cite book | last =Scott | first =David L. | title =Wall Street Words | publisher =Houghton Mifflin | date =1998 | isbn =0-395-43747-4 | url-access =registration | url =https://archive.org/details/wallstreetwords00scot }} 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.Investopedia [http://www.investopedia.com/terms/s/shakeout.asp Shakeout] Retrieved on July 25, 2007

Shakeouts can often occur after an industry has experienced a period of rapid growth in demand followed by overexpansion by manufacturers.{{Citation needed|date=June 2024}} Large, diversified companies are often most able to endure a weak business climate and can benefit from shakeouts.{{Citation needed|date=June 2024}} A shakeout of investors and internet businesses occurred during the dot-com bubble.{{Citation needed|date=June 2024}}