Headline Risk

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Dictionary Says

Definition of 'Headline Risk'

The possibility that a news story will adversely affect a stock's price. Headline risk can also impact the performance of the stock market as a whole.

Investopedia Says

Investopedia explains 'Headline Risk'

For example, in the aftermath of the housing crisis, mortgage lenders such as Bank of America, JP Morgan Chase and CitiGroup faced significant headline risk.

One way a company can mitigate headline risk is through effective public relations campaigns. Successful public relations efforts can promote positive images of a company that can help counteract any negative stories as well as provide swift damage control if such a story is released. Individual investors can counteract headline risk by using a buy-and-hold investing strategy that ignores the short-term changes in the market that are triggered by headlines.

 
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'Headline Risk'

  • 10 Risks That Every Stock Faces

    http://www.investopedia.com/articles/stocks/11/risks-every-stock-faces.asp
    ... (For related reading, see Commodity Prices And Currency Movements.) Headline Risk
    Headline risk is the risk that stories in the media will hurt a company's ...

  • Can Regular Investors Beat The Market?

    http://www.investopedia.com/articles/trading/10/beat-the-market.asp
    ... This gives you specific criteria to act and provides your portfolio with
    purpose and specific direction. Watch for headline risk. ...

  • Vivus Tries A New Path

    http://stocks.investopedia.com/stock-analysis/2011/Vivus-Tries-A-New-Path-VVUS-ARNA-OREX-PFE-LLY-GSK-WTW-NVS0920.aspx
    ... What's more, there is still at least headline risk from the FORTRESS study.
    While Vivus bulls will claim that the lower dose of ...

  • Support and Resistance Levels to Watch

    http://stocks.investopedia.com/stock-analysis/moneyshow/SupportandResistanceLevelstoWatch.aspx
    ... Headline risk coming out of Europe is seemingly constant. I would keep position
    sizes light and monitor risk aggressively. This is not the time to be a hero! ...

  • Financial ETFs That Can Hurt Your Portfolio

    http://stocks.investopedia.com/stock-analysis/2011/Financial-ETFs-That-Can-Hurt-Your-Portfolio-XLF-SKF-KBE-XLU1107.aspx
    ... funds. Volatility and a high degree of headline risk seem to be the lone
    certainties right now when it comes to financial ETFs. Use ...

  • Investors Could Reap Profits From Monsanto

    http://stocks.investopedia.com/stock-analysis/2010/Investors-Could-Reap-Profits-From-Monsanto-MON-DD-SYT-POT0412.aspx
    ... are likely to harm the business over the long-term (though enough farmers souring
    on Monsanto is clearly a risk), but they do represent headline risk for the ...

  • Skechers' Toning Footwear A Fraud?

    http://stocks.investopedia.com/stock-analysis/2011/Skechers-May-Be-Making-Sketchy-Claims-SKX-NKE-CROX-WWW1004.aspx
    ... There looks to be more downside momentum for Skechers and headline risk relating
    to a possible fine and potentially damaging lawsuit, is enough to recommend ...

  • Universal Healthcare: A Win For Health Insurers?

    http://stocks.investopedia.com/stock-analysis/2010/Universal-Healthcare-A-Win-For-Health-Insurers-UNH-AET-WLP-CI0129.aspx
    ... For Pre-Existing Conditions.) The Bottom Line Investing in an industry heavily tied
    to changes in government spending means headline risk is extremely high. ...

  • Follow Growth Trends With These 9 Stocks

    http://stocks.investopedia.com/stock-analysis/moneyshow/FollowGrowthTrendsWithThese9Stocks.aspx
    ... now. I think it’sa very dangerous play. There’sa lot of headline risk
    wrapped up, and it’s just not worth it. Kate Stalter ...

  • When to Favor Options Over Stocks

    http://stocks.investopedia.com/stock-analysis/moneyshow/WhentoFavorOptionsOverStocks.aspx
    ... Common stock alone is also going to carry with it greater dollar risk, as
    a major headline can bring tremendous gap trading potential. ...

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