What term describes a stock market condition where stockholders rush to sell shares, worsening the market decline?

The term that describes a stock market condition where stockholders rush to sell shares, exacerbating a market decline, is a bear market. During a bear market, which is characterized by falling prices and widespread pessimism, investor sentiment can lead to panic selling. This selling pressure further drives down stock prices, creating a cycle of fear and decline.

In contrast, dumping typically refers to the practice of selling a large number of shares in a short period, but it does not encapsulate the broader market condition like a bear market does. A trade deficit relates to the economic balance of trade and does not specifically address stock market behavior. A margin call occurs when an investor must deposit additional funds to maintain an investment account's minimum balance but does not directly describe the panic selling associated with bear market conditions. Thus, identifying a bear market effectively captures the phenomenon of stockholders rushing to sell shares during a significant market downturn.