Grey Swan

DEFINITION of 'Grey Swan'

An event that can be anticipated to a certain degree, but is considered unlikely to occur and may have a sizable impact on the valuation of a security or the health of the overall market if it does occur. A grey swan event is unlike a black swan event whose total impact is difficult to predict. Despite the possibility of determining the properties and potential impact of such an event, it is difficult to create precise calculations regarding the total impact.

BREAKING DOWN 'Grey Swan'

The term "black swan" was coined by Nassim Nicholas Taleb to describe the uncertainty and risk posed by unpredictable events. Grey swan events, which are derived from the black swan concept, may include earthquakes and even events like the Great Depression. While analysts can look at the impacts that similar events had across history, the exact extent of damage and risk cannot be calculated.

RELATED TERMS
  1. Black Swan

    An event or occurrence that deviates beyond what is normally ...
  2. Grey Market

    1. A market where a product is bought and sold outside of the ...
  3. Grey Wave

    An investment or company thought to be profitable in the long-term ...
  4. Taxable Event

    Any event or transaction that results in a tax consequence for ...
  5. Annual

    An event that occurs once a year. Annual events or reports may ...
  6. Gambler's Fallacy

    When an individual erroneously believes that the onset of a certain ...
Related Articles
  1. Investing

    Understanding Black Swan Events

    Finance professor and Wall Street trader Nassim Nicholas Taleb popularized the term in his writings. The rise of the Internet, the Sept. 11 attacks and World War I were all black swan events. ...
  2. Investing

    Don't Freak Out Over Black Swans; Be Prepared

    Could 2016 be a big year for black swans? Who knows? Here's what black swans are, how they can devastate the unprepared, and how the prepared can emerge unscathed.
  3. Investing

    Black Swans, Explained

    There exists a certain type of trader who invests in low-probability events that generate enormous pay-offs if they occur. These are the Black Swans.
  4. Investing Basics

    Black Swan Events And Investment

    These world-changing events are rare and difficult to predict, but they have serious implications for your investments.
  5. Savings

    Put $10,000 in the S&P 500 ETF and Wait 20 Years

    Find out what you should expect if you invest $10,000 in an S&P 500 exchange-traded fund (ETF) and wait 20 years.You could do better than Donald Trump.
  6. Investing

    How To Spot A Sell-Off

    The ability to identify a sell-off can be an extremely reliable resource to have in a time of market uncertainty.
  7. Forex Education

    Black Vs. Grey

    Candlestick charts can look confusing but they are actually quite simple and easy to understand.
  8. Investing News

    5 Things To Know About the Markets

    Investors: Here are your five things to know about the market today.
  9. Term

    What are Mutually Exclusive Events?

    In statistics, mutually exclusive situations involve the occurrence of one event that does not influence or cause another event.
  10. Economics

    Where Does the Term "Black Friday" Come From?

    The term Black Friday can be used in a couple of different contexts; one positive and one negative.
RELATED FAQS
  1. How is the stock market affected by Thanksgiving and Black Friday?

    See why Thanksgiving and Black Friday sales numbers are considered to be important indicators for stock market activity throughout ... Read Answer >>
  2. What is Black Friday?

    Black Friday is a popular label attached to the Friday following Thanksgiving Day in the US. This day marks the beginning ... Read Answer >>
  3. What are some examples of different taxable events?

    Learn what a taxable event is and how it affects investors and taxpayers with examples of taxable events that can result ... Read Answer >>
  4. How can value investors benefit from investing in the metals and mining sector?

    Find out how to benefit when investing in precious metals sector, and understand how gold can help hedge against currency, ... Read Answer >>
  5. To whom was the term "corporate kleptocracy" first applied?

    The term "corporate kleptocracy" is believed to have originated in a 2004 report by the Special Committee of the Board of ... Read Answer >>
  6. What is a volatility smile?

    Discover what options traders mean when they refer to a "volatility smile," and learn why a volatility smile's existence ... Read Answer >>
Hot Definitions
  1. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  2. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  3. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  4. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  5. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  6. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
Trading Center