Buy on the bad news

Definition:

Buying stock shortly after a price drop resulting from bad news from the company. Investors believe that the price has hit bottom and will trend upward. See: Bottom fisher.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Own foreign offices

U.S. reporting institutions' parent organizations, branches, and/or majority owned subsidiaries located outside the United States.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio