Air Pocket Stock

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DEFINITION

A stock that experiences a sudden drop, similar to a plane hitting an air pocket. Air pocket stocks are usually the result of investors reacting to negative news.

INVESTOPEDIA EXPLAINS

This is almost always caused by shareholders selling because of unexpected bad news. An air pocket stock isn't necessarily in dire straits. More often than not, the abrupt, drop caused by disgruntled investors is usually the end of the correction.


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