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.


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.

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    The main factors that impact share prices in the insurance sector are interest rates, earnings and actuarial risk. In the ... Read Full Answer >>
  2. What usually happens to the price of a stock when a tender offer for shares of the ...

    Usually, the price of a stock rises when a tender offer for shares of the company is made public. A tender offer is an offer ... Read Full Answer >>
  3. How can I calculate a company's forward p/e in Excel?

    Trading volume is usually higher when the price of a security is changing because changes in price happen due to a catalyst ... Read Full Answer >>
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    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 >>
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    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 >>
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