Reaction

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Dictionary Says

Definition of 'Reaction'

A reversal in the movement of a security's price. Reaction is most often associated with a downward movement in the price of a security after a period of upward movement, as investors sell off shares or decrease the volume of buy orders for fear of the security being overvalued. Reactions are likely to be mild and lead to a slight increase or decrease in price, rather than a large change in value. A reaction is similar to a correction but lacks the same intensity. 
Investopedia Says

Investopedia explains 'Reaction'

Reactions are generally considered to be positive for the overall health of the market, since unending price increases can cause inflation or result in an even larger price drop if a company doesn't meet expectations. A reaction is likely to prevent events such as runs or high volume sell offs at later dates.

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Search results for

'Reaction'

  • FedEx Guidance Trumps Its Earnings

    http://stocks.investopedia.com/stock-analysis/2010/FedEx-Guidance-Trumps-Its-Earnings-FDX-UPS-CSX-R-AMR-OSG1220.aspx
    ... FedEx Corp (NYSE:FDX) received a mixed reaction from the Street on its latest
    quarterly earnings report. The package delivery company ...

  • GM Cruzes

    http://stocks.investopedia.com/stock-analysis/2011/GM-Cruzes-GM-TM-F-HMC-NSANY0509.aspx
    GM's Q1 sales and profits soared, but analyst reaction was blasé. ... Analyst Reaction
    Muted Analyst reaction was blasé, deeming the GM report only "okay". ...

  • Understanding Investor Behavior

    http://www.investopedia.com/articles/05/032905.asp?partner=aol-d
    ... Regret Theory Fear of regret, or simply regret, theory deals with the emotional
    reaction people experience after realizing they've made an error in judgment. ...

  • Are Investors Too Concerned With Dilution?

    http://stocks.investopedia.com/stock-analysis/2009/Are-Investors-Too-Concerned-With-Dilution-EK-PALM0921.aspx
    ... Tickers in this Article: BEXP, EK, KOG, PALM. Investors tend to have a knee-jerk
    sell reaction to a secondary offering that dilutes the shareholder base. ...

  • Can The US Remain Risk-Free? - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0811/Can-The-U.S.-Remain-Risk-Free.aspx
    ... note. This is one of the reasons the announcement of a deal did not cause
    a euphoric reaction from the markets. Will the Cuts Work? ...

  • Understanding Investor Behavior

    http://www.investopedia.com/articles/05/032905.asp
    ... Regret Theory Fear of regret, or simply regret, theory deals with the emotional
    reaction people experience after realizing they've made an error in judgment. ...

  • The Currency Market Information Edge

    http://www.investopedia.com/articles/forex/09/forex-information-currency-market.asp
    ... The proliferation of instant communications technology has caused reaction times
    to shorten dramatically in all financial markets, not just in the forex market ...

  • Famous And Infamous CEO Transitions - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0811/Famous-And-Infamous-CEO-Transitions.aspx
    ... Perhaps that explains why the reaction to the official announcement of
    Steve Jobs' resignation was calm and relatively moderate. ...

  • Mortgages: How Much Can You Afford?

    http://www.investopedia.com/articles/pf/05/030905.asp
    ... you live, how much you earn or what type of house you are shopping for, as soon
    as you find out how much the seller is asking, your first reaction might be ...

  • Carnival Shares Shipwrecked

    http://stocks.investopedia.com/stock-analysis/2012/Carnival-Shares-Shipwrecked-CCL-STNR-BP-RCL0118.aspx
    ... quotes and insights. Assessing the Damage The market's reaction to the
    cruise ship disaster comes as no surprise. In addition to ...

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