Beating The Gun

DEFINITION of 'Beating The Gun'

A slang phrase used when an investor purchases or sells a security at a beneficial price by executing a trade before the market can respond to new information. Beating the gun denotes an investor's ability to time the market and react more quickly than other investors.

BREAKING DOWN 'Beating The Gun'

Experienced or professional investors try to beat the gun to earn extra return on their investments. Beating the gun requires that an investor act on information before every other investor, which is a difficult accomplishment for casual traders.

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RELATED FAQS
  1. How does gun control policy affect the stock price of firearm companies?

    In general, companies that manufacture firearms, ammunition, and firearm accessories will find it easier to sell their products ... Read Answer >>
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    Guns and butter refers to a famous model explaining the relationship between two goods that are important for a nation's ... Read Answer >>
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    "Beating the market" means trying to earn an investment return greater than that of the S&P 500 index, one of the most ... Read Answer >>
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    The term "dry powder" originated during the days when military battles were fought with guns and cannons that used gun powder. ... Read Answer >>
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    "Beating the market" is a difficult phrase to analyze. It can be used to refer to two different situations:1. An investor, ... Read Answer >>
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    First, a quick review: the required rate of return is defined as the return, expressed as a percentage, that an investor ... Read Answer >>
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