Capitulation (surrender)

Capitulation (Latin: capitulum, a little head or division; capitulare, to treat upon terms), an agreement in time of war for the surrender to a hostile armed force of a particular body of troops, a town or a territory.

It is an ordinary incident of war, and therefore no previous instructions from the captors' government are required before finally settling the conditions of capitulation. The most usual of such conditions are freedom of religion and security of private property on one hand, and a promise not to bear arms within a certain period on the other.

Such agreements may be rashly concluded with an inferior officer, on whose authority the enemy are not in the actual position of the war entitled to place reliance. When an agreement is made by an officer who has not the proper authority or who has exceeded the limits of his authority, it is termed a "sponsion", and, to be binding, must be confirmed by express or tacit ratification.

The Hague Convention (1899) on the laws and the customs of war lays down that capitulations agreed on between the contracting parties must be in accordance with the rules of military honor. When once settled they must be observed by both the parties.[1]

Stock market capitulations

In financial markets "capitulation" describes "giving up" on the market or "surrendering" to bearishness (pessimism)[2] to an extent which involves "panic" selling.[3][4][5][6]

See also


  1. "Hague II (July 29, 1899), Annex to the Convention, Article 35". Retrieved 2011-02-24.
  2. "Bearishness - definition of Bearishness by the Free Online Dictionary, Thesaurus and Encyclopedia". Retrieved 2011-02-24.
  3. "Capitulation financial definition of Capitulation. Capitulation finance term by the Free Online Dictionary". Retrieved 2011-02-24.
  4. "Peston's Picks: How close to capitulation?". BBC. 2008-10-06. Retrieved 2011-02-24.
  5. "Editorials | The Stump". Retrieved 2011-02-24.
  6. Hulbert, Mark (2008-10-07). "Monday probably didn't constitute capitulation". MarketWatch. Retrieved 2011-02-24.
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