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. Mutual Funds & ETFs

    When To Sell A Mutual Fund

    Unhappy with your mutual fund's returns and thinking of investing elsewhere? Read this article first.
  2. Mutual Funds & ETFs

    Should You Follow Your Fund Manager?

    Learn how to tell if a fund in flux is still a suitable investment.
  3. Mutual Funds & ETFs

    Mutual Fund Basics Tutorial

    Learn about the basics - and the pitfalls - of investing in mutual funds.
  4. Markets

    Reading Financial Tables Tutorial

    Learn about six common types of financial tables and figure out how to interpret them.
  5. Trading Strategies

    What is the logic behind using Bollinger BandsĀ® as an indicator of volatility?

    Discover the logic behind using Bollinger Bands as a measure of price volatility for a security, and how the bands adapt to changing price ranges.
  6. Technical Indicators

    Are Bollinger BandsĀ® useful for analyzing securities with very low volatility?

    Learn more about Bollinger Bands, a tool based on standard deviations of moving average that can be applied to both high and low volatility stocks.
  7. Pimco has stabilized its Total Return fund, but its returns are still shaky and its sales load is still a fat one.
    Professionals

    A Look At Pimco's Total Return Fund Post-Gross

    Pimco has stabilized its Total Return fund, but its returns are still shaky and its sales load is still a fat one.
  8. Charts & Patterns

    What are the best ways to protect trade positions against false signals?

    Find out why it is important that traders learn to protect themselves against false signals, and read about some of the most common protection strategies.
  9. Chart Advisor

    Invest In Leisure & Entertainment For 2015

    The leisure and entertainment industries are showing strong upward trends as seen in the Powershares Dynamic Leisure & Entertainment ETF.
  10. 10 equity mutual funds bargains for any investor or financial advisor.
    Professionals

    10 Equity Mutual Fund Bargains

    10 equity mutual funds bargains for any investor or financial advisor.

You May Also Like

Hot Definitions
  1. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  2. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  3. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  4. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
  5. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
  6. Law Of Supply And Demand

    A theory explaining the interaction between the supply of a resource and the demand for that resource. The law of supply ...
Trading Center