Statement Shock

AAA

DEFINITION of 'Statement Shock'

The shock associated with opening an investment statement and seeing that the value of your portfolio has dropped more than expected. Statement shock most commonly occurs as a result of an unexpected drop in value, but it can also be caused by lower-than-expected returns.

INVESTOPEDIA EXPLAINS 'Statement Shock'

Statement shock is most likely to occur following large downturns in the market. Many investors will contribute to an investment fund and receive statements in the mail on a monthly, quarterly or annual basis. The average investor usually does not follow the day-to-day fluctuations of his or her portfolio and therefore will be shocked to see a large change in value from one statement to the next.

RELATED TERMS
  1. Statement Stuffer

    A type of sales brochure included in a customer's account statement. ...
  2. Continuation Statement

    An amendment that is attached to a borrower's financing statement ...
  3. Bear Market

    A market condition in which the prices of securities are falling, ...
  4. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  5. Prospectus

    A formal legal document, which is required by and filed with ...
  6. Pension Fund

    A fund established by an employer to facilitate and organize ...
Related Articles
  1. When To Sell A Mutual Fund
    Mutual Funds & ETFs

    When To Sell A Mutual Fund

  2. Should You Follow Your Fund Manager?
    Mutual Funds & ETFs

    Should You Follow Your Fund Manager?

  3. Mutual Fund Basics Tutorial
    Mutual Funds & ETFs

    Mutual Fund Basics Tutorial

  4. Reading Financial Tables Tutorial
    Markets

    Reading Financial Tables Tutorial

comments powered by Disqus
Hot Definitions
  1. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  4. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  5. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  6. 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 ...
Trading Center