Catalyst

AAA

DEFINITION of 'Catalyst'

Something that initiates or causes an important event to happen. Originally a term used in chemistry for the volatile (active) chemical in a formula.

INVESTOPEDIA EXPLAINS 'Catalyst'

Quite often you will hear someone say that a stock needs a catalyst. This means that the stock needs some good news or a press release to get people interested in the stock again.

RELATED TERMS
  1. Shakeup

    A series of events and processes that a company's management ...
  2. Press Release

    News that is sent out or released by the company making the news. ...
  3. Event Study

    An empirical study performed on a security that has experienced ...
  4. Mobile First Strategy

    Mobile first strategy is trend in website development where designing ...
  5. Bulldog Market

    A nickname for the foreign bond market of the United Kingdom. ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or ...
RELATED FAQS
  1. Why do stock prices change following news reports?

    Stock prices move up and down every minute due to fluctuations in supply and demand. If more people want to buy a particular ... Read Full Answer >>
  2. What causes a significant move in the stock market?

    There is a nearly infinite number of factors that can cause the stock market to move significantly in one direction or another. ... Read Full Answer >>
  3. How do the C-suite members work together to make a successful company?

    Corporate managers, typically chosen by a board of directors in large organizations, are ultimately responsible to stakeholders ... Read Full Answer >>
  4. How does agency theory propose to deal with the agency problem?

    Agency theory highlights potential problems that may occur when agents and principals have different interests. Principals ... Read Full Answer >>
  5. What is the difference between a poison pill defense and a suicide pill defense?

    A poison pill defense and a suicide pill defense are two different defense strategies a company may use to thwart a hostile ... Read Full Answer >>
  6. What is the difference between a "flip-in" and "flip-over" poison pill?

    A poison pill is a defense tactic used by corporations to thwart hostile takeovers. The takeover candidate uses a poison ... Read Full Answer >>
Related Articles
  1. Forex Education

    How To Trade Forex On News Releases

    When economic data comes out, it can have a marked impact on the currency market. Find out how to profit.
  2. Investing

    Understanding Smart Beta Sources of Returns

    In part 2, BlackRock explains how Smart Beta beats other active investment strategies.
  3. Investing

    Smart Beta in Portfolios

    In part 3, BlackRock explains how Smart Beta is a powerful tool for investors.
  4. Investing

    Disadvantages Of Stock Simulators

    Stock simulators enable one to practice trading, but they have some disadvantages that you should be aware of, before transitioning to actual trading.
  5. Investing

    Wizards Of Odd: A Trip To Tech Land

    I spent a couple of days in Silicon Valley, and here are some key lessons I learned after meeting with a number of tech CEOs and venture capitalist.
  6. Investing

    Crowdfunding: Wide Opening For Tech Investors

    Crowdfunding has dramatically changed investing and opened the door for the public to get in on all types of exciting startups, including tech firms.
  7. Professionals

    Ready For The Entrepreneurial Leap?

    There are key traits and motivations that characterize an entrepreneur; these aren't necessarily genetic, but can be acquired over time.
  8. Investing Basics

    Here's How To Tap International Markets

    Access to foreign markets has grown a lot in recent years, allowing US market players to trade these bourses in real-time.
  9. Investing

    What's a Small Cap Stock?

    The “cap” in small cap stocks refers to a company’s capitalization as determined by the total market value of its publicly traded shares. Small cap stocks are generally defined as the stock of ...
  10. Investing

    What is Market Value?

    Market value is the price of an asset that is traded or offered for sale in a public forum where multiple buyers are allowed to make offers to buy that asset.

You May Also Like

Hot Definitions
  1. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  2. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  3. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
  4. Adverse Selection

    1. The tendency of those in dangerous jobs or high risk lifestyles to get life insurance. 2. A situation where sellers have ...
  5. Wash Trading

    The process of buying shares of a company through one broker while selling shares through a different broker. Wash trading ...
Trading Center