Profit taking

Definition:

Action by short-term securities traders to cash in on gains created by a sharp market rise, which pushes prices down temporarily but implies an upward market trend. See: Ring the [cash] register.

Investing Essentials


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

Term of the Day

Asset-backed security

A security that is collateralized by loans, leases, receivables, or installment contracts on personal property, not real estate.

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