Jim Cramer

DEFINITION of 'Jim Cramer'

Former hedge fund manager, columnist and author as well as host of CNBC's "Mad Money" and CBS radio's "Real Money". Cramer's claim to fame is his bombastic and 'in your face' behavior in which he gives recommendations and analysis on featured and viewer-suggested stocks. Jim Cramer is also one of the founders of TheStreet.com, a popular financial website.

BREAKING DOWN 'Jim Cramer'

Although Cramer does give his opinion on the investment value of any given stock, he prefers that his viewers go out and conduct their own research on the underlying businesses before buying stocks. However, many of Cramer's viewers do go and purchase stocks just because he recommended them. This effect is so prominent that the price of a stock can actually go up significantly for a couple of days after his recommendation, due to the increased buying pressure.

Critics often point out that Cramer can be very fickle in his investment outlook, because he appears to frequently flip-flop from a bullish position to a bearish position to reflect the market's current sentiment.

RELATED TERMS
  1. Cramer Bounce

    The sudden overnight appreciation of a stock's price after it ...
  2. FANG Stocks (FB, AMZN)

    FANGs stands for the high-performing tech stocks Facebook, Amazon, ...
  3. Peter Lynch

    One of the most successful and well known investors of all time. ...
  4. Protective Put

    A risk-management strategy that investors can use to guard against ...
  5. Strong Buy

    A type of stock purchasing recommendation given by analysts for ...
  6. After-Tax Real Rate Of Return

    The actual financial benefit of an investment after accounting ...
Related Articles
  1. Entrepreneurship

    Jim Cramer Success Story: Net Worth, Education & Top Quotes

    Learn about Jim Cramer the man and how he got to be successful. Understand his different levels of success and what he is doing in 2015.
  2. Investing News

    Volatility Vexed? See What the Experts Are Saying

    Volatile times lead to a diversity of opinions on where the market is headed. Here are takes from five investing luminaries.
  3. Stock Analysis

    Finding Cramer's Accidental High-Yielders

    We check out good companies that now have supersized dividends due to depressed stock prices.
  4. Stock Analysis

    Cramer's Four Horsemen Still In The Saddle

    Cramer's "must have" tech stock picks should continue to outperform.
  5. Stock Analysis

    3 Reasons To Own International Paper

    Find out why International Paper is a buy, with or without Temple-Inland.
  6. Investing Basics

    5 Essential Things You Need To Know About Every Stock You Buy

    Investing is easy but investing successfully is tough. Knowing these five essentials can help save you time when researching a stock.
  7. Investing News

    CBS Corporation Stock to Trade Ex-Dividend (CBS)

    CBS will make its dividend payment on April 1 to shareholders of record as of Friday, March 11.
  8. Professionals

    Celebrities Who Worked In Finance Before They Became Famous

    Find out which Hollywood stars and personalities started their working careers in the world of finance.
  9. Investing News

    CBS Stock Surges Ahead Earnings (CBS)

    While competitors like Disney or Comcast suffer from the cord-cutters, CBS has figured out ways to make money from it.
  10. Investing

    12 Experts Explain The Secret To Buffett’s Success

    We interviewed some of America’s biggest money experts, and threw them a gauntlet: Tell us the secret to Warren Buffett’s success.
RELATED FAQS
  1. How can an investor profit from a fall in the price of bank stocks?

    Discover the main ways to take advantage of a fall in bank stocks. Shorting stocks and buying put options can let traders ... Read Answer >>
  2. What is the difference between risk avoidance and risk reduction?

    Learn what risk avoidance and risk reduction are, what the differences between the two are, and some techniques investors ... Read Answer >>
  3. How did Warren Buffett get started in business?

    Warren Buffett may have been born with business in his blood. He started saving while other children were at the playground, ... Read Answer >>
  4. What is the difference between a buy-side analyst and a sell-side analyst?

    The main difference between these two types of analysts is the type of firm that employs them and the people to whom they ... Read Answer >>
  5. How do traders use out-of-the-money options to hedge?

    Learn a couple of simple option trading strategies that traders can use to hedge an existing market position and protect ... Read Answer >>
  6. How are risk profiles and speculation related?

    Learn more about risk profiles and speculation, why speculators should assess their risk profiles and how risk profiles and ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center