Stock catalyst

A stock catalyst is an event that causes the price of a security to move, sometimes significantly. Examples of stock catalysts are:

  • Company earnings releases
  • Investor/Analyst Days
  • Analyst revisions
  • Product launches
  • Management transitions
  • Significant dividend changes
  • Significant stock buyback changes

In a simplified sense, it is good news or a press release to get people interested in the stock again.[1] Stock catalysts often change investor sentiment and can mark the beginning or end of stock trends. They may affect the perception of a company's discounted future cash flows.

References

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