DEFINITION of 'Rebound'

In financial terms, a rebound means a recovery from prior negative activity. For a security, a rebound means that it has moved higher from a lower price. For the general economy, a rebound means that economic activity has increased from lower levels, like the bounce back following a recession.


A recession is defined by economists as two consecutive quarters without economic growth. Recessions are part of the business cycle which consists of: expansion, peak, recession, trough and recovery. A rebound from a recession would occur in the recovery stage.

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