Gather in the stops

Definition:

A market strategy in which investors sell stocks to drive prices to a level that breaks through stop orders known to exist. Once the price is low enough, the stop orders become market orders and are executed, to create snowballing.

Investing Essentials


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

Term of the Day

Premium raid

An attempt to acquire a large portion of a company's stock to gain control by offering stockholders a premium over the market value for their shares.

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