Stock Cycle

DEFINITION of 'Stock Cycle'

The evolution of a stock's price from an early uptrend to a price high and eventually to a downtrend. The stock cycle is a buy-and-sell cycle that occurs over several years and has four stages:

1. Accumulation
2. Markup
3. Distribution
4. Markdown

BREAKING DOWN 'Stock Cycle'

The stock cycle has expansion and contraction periods, much like the economic cycle. It can be used for portfolio management allocation, allowing for more investment during the accumulation and markup phases and less investment during the distribution and markdown phases.

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RELATED FAQS
  1. What is revenue cycle management?

    Learn more about revenue cycle management and why the healthcare industry in particular has adopted this payment process ... Read Answer >>
  2. Why is an accounting cycle necessary?

    Find out why it is important for a company to identify and follow an accounting cycle, and how proper accounting helps the ... Read Answer >>
  3. A person purchases stock XYZ (an Over The Counter stock) from a company who is also ...

    The correct answer is c When the firm is a market maker in the stock then it must act as a principle. Principal is the main ... Read Answer >>
  4. What is the difference between gross profit margin and markup?

    Understand the distinction between gross profit margin and markup, and learn how each of these measures of profitability ... Read Answer >>
  5. What are the key metrics used to measure the business cycle?

    Learn what key metrics are used to determine if the business cycle is in a period of expansion, contraction, or at a peak ... Read Answer >>
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    Learn how your individual investing style determines what phase of the economic cycle is the best time to invest in the banking ... Read Answer >>
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