Sudden Wealth Syndrome (SWS)

AAA

DEFINITION of 'Sudden Wealth Syndrome (SWS)'

A syndrome afflicting individuals who suddenly come into large sums of money. Becoming suddenly wealthy can cause an individual stress. Its symptoms include: feeling isolated from former friends, feelings of guilt over their good fortune, and an extreme fear of losing all their money.

INVESTOPEDIA EXPLAINS 'Sudden Wealth Syndrome (SWS)'

Sudden Wealth Syndrome (SWS) is not an actual psychological diagnosis, but a term coined by therapists that deal with patients and their issues pertaining to sudden wealth. Some people with SWS won the lottery, struck it rich with stock options in the tech bubble of the late 1990s, or received large inheritances. The afflicted are dealing with an identity crisis - moving from an average working Joe to a wealthy, privileged individual.

RELATED TERMS
  1. Warren Buffett

    Known as "the Oracle of Omaha", Buffett is Chairman of Berkshire ...
  2. Muriel Siebert

    A pioneer for women in the world of finance. Known as "the first ...
  3. Coattail Investing

    An investment strategy in which investors mimic the trades of ...
  4. Dotcom

    A company that embraces the internet as the key component in ...
  5. Oracle Of Omaha

    A nickname for Warren Buffett, who is arguably one of the greatest ...
  6. Paper Millionaire

    An individual who has achieved a high net worth as a result of ...
RELATED FAQS
  1. How does days to cover a short position relate to a short squeeze?

    Days to cover a short position reveals the intensity and duration of a potential short squeeze. A short squeeze occurs when ... Read Full Answer >>
  2. Is it better practice to use a stop order or a limit order?

    Both stop orders and limit orders have their advantages and disadvantages; traders need to decide between the two based on ... Read Full Answer >>
  3. What is the difference between a buy limit and a sell stop order?

    A buy limit order is a specific type of buy order used to enter a market, while a sell-stop order is a sell order that can ... Read Full Answer >>
  4. What is the difference between a short squeeze and a long squeeze?

    A short squeeze and a long squeeze are situations that can force traders and investors out of their positions. A short squeeze ... Read Full Answer >>
  5. Why does the efficient market hypothesis state that technical analysis is bunk?

    The efficient market hypothesis (EMH) suggests that markets are informationally efficient. This means that historical prices ... Read Full Answer >>
  6. What does it mean to be absolutely risk averse?

    Some people are absolutely risk-averse, which means that they cannot tolerate sustaining any sort of loss, even a temporary ... Read Full Answer >>
Related Articles
  1. Investing Basics

    What Is Private Equity?

    This investment vehicle attracts wealthy investors to increase the value of portfolio companies.
  2. Options & Futures

    When Your Business Needs Money: Angel Investors

    If you have a promising business that needs a boost, you may be able to put your faith in these wealthy investors.
  3. Options & Futures

    Silver Thursday: How Two Wealthy Traders Cornered The Market

    Find out how the largest speculative attempt to corner the market went awry.
  4. Trading Strategies

    How To Cover Your Bases After Making A Trade

    Follow up your trade entry with these time-tested risk management strategies.
  5. Entrepreneurship

    The 10 Richest Women In Fashion

    The top 10 richest women in fashion have many similarities as well as differences. From nationality to career trajectory, these women have established themselves in their own unique ways.
  6. Chart Advisor

    Commodity Traders are Watching These 3 Charts

    As we head towards the summer months, many commodity traders are looking to diversify their holdings and to protect themselves against inflation.
  7. Taxes

    Top Tax Issues For High-Net-Worth Individuals

    Wealth brings benefits, but from a tax perspective it creates special challenges. Here are some tax issues to pay attention to.
  8. Entrepreneurship

    The 10 Richest Women In Tech & Media

    These 10 women are the wealthiest in tech and media.
  9. Trading Strategies

    Micro-Patterns: Looking At The Smaller Picture

    Micro-patterns within trading ranges reveal hidden characteristics of the bull-bear struggle.
  10. Entrepreneurship

    The 10 Richest Women In The United States

    We provide an overview of America's 10 richest women, the sources of their wealth, and their professional and philanthropic activities.

You May Also Like

Hot Definitions
  1. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  2. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  5. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
  6. Terminal Value - TV

    The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as ...
Trading Center