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


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.

  1. Markdown

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  2. Business Cycle

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  3. Recession Resistant

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  4. Coincident Indicator

    A metric which shows the current state of economic activity within ...
  5. Markup

    The difference between an investment's lowest current offering ...
  6. Runoff

    The procedure of printing the end-of-day prices for every stock ...
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