Statement Shock

What Does Statement Shock Mean?
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

Bear Market
Closed-End Investment
Continuation Statement
Downswing
Investor Shares
Mutual Fund
Pension Fund
Pooled Funds
Prospectus
Slow Market
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