Asteroid Event

Filed Under »
Dictionary Says

Definition of 'Asteroid Event'

An event that is sudden and unexpected and cause a drastic change in the eniviroment in which it occurs. An asteroid event will often be disasterous for a company, industry or economy due to its unpredictability and suddeness. Such an event is almost impossible to adequately prepare for and can be thought of as the worst-case scenario.
Investopedia Says

Investopedia explains 'Asteroid Event'

Companies that rely on the creativity of a lone executive board member, or the popularity of a small set of products may experience an asteroid event if that executive were to suddenly leave the company or a new technology makes existing products immediately obsolete.

An example of an asteroid event would be if a drug manufacturer has its income-generating drug pulled from the market after being found to have harmful side effects. Since the sale of the drug is the only thing keeping the company in business, its elimination from the market would make the value of the company's stock plummet.

Articles Of Interest

  1.

    Great Company Or Growing Industry?

    Look at the big picture when choosing a company - what you see may really be a stage in its industry's growth.

  2. A History Of U.S. Monopolies

    These monoliths helped develop the economy and infrastructure at the expense of competition.

  3. Antitrust Defined

    Check out the history and reasons behind antitrust laws, as well as the arguments over them.

  4. 10 Common Financial Terms Every Newbie Needs To Know

    In order to get a better understanding of what you read in markets news, we’ll briefly explore the terms you commonly encounter.

  5. What Determines Your Cost Basis?

    In any transaction between a buyer and seller, the initial price paid in an exchange for a product or service will qualify as the cost basis. When it comes to securities and related financial ...

  6. Examining Stereotypes In Investing

    Irrespective of age, sex and other such factors, no normal investor wants an unsuitable investment. How much people really understand about their investments depends on various factors, including ...

  7. The Basics Of A Financial Analysis Report

    Running financial analysis on a company or industry is a key skill every investor must learn and understand how to undertake without which an ineffective financial report and investment recommendation ...

  8. Mining Stocks: Understanding Feasibility

    In this article, we'll look at the feasibility study as it relates to mining stocks and what it is actually telling investors.

  9. Introduction To Growth Investing

    There are principles and techniques that are applicable for many different types of investors and growth strategies.

  10. Everything Investors Need To Know About Earnings

    We go over the concepts behind the excitement over the most important figure in the stock market.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Zomma

    An options greek used to measure the change in gamma in relation to changes in the volatility of the underlying asset.

  2. Yield Elbow

    The point on the yield curve indicating the year in which the economy's highest interest rates occur. The yield elbow is the peak of the yield curve, signifying where the highest interest rates occurred.

  3. Xenocurrency

    A currency that trades in markets outside of its domestic borders.

  4. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.

  5. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.

  6. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=a57eb0c451e218ae9ac776b55d423df3