Catalyst

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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.

BREAKING DOWN '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.

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RELATED FAQS
  1. What are the main factors that impact share prices in the insurance sector?

    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 >>
  4. 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 >>
  5. 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 >>
  6. What is a stock split? Why do stocks split?

    All publicly-traded companies have a set number of shares that are outstanding on the stock market. A stock split is a decision ... Read Full Answer >>

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