Window Of Opportunity

AAA

DEFINITION of 'Window Of Opportunity'

A window of opportunity is a short time period during which an otherwise unattainable opportunity exists. After the window of opportunity closes, the opportunity ceases to exist. Since good deals on real estate, business offers, etc. do not exist forever, the window of opportunity is the ideal time to act.

INVESTOPEDIA EXPLAINS 'Window Of Opportunity'

An example of a window of opportunity is the initial public offering (IPO) of a stock. With some rapidly rising stocks, such as Google, there is a small window of opportunity during its IPO before its price might significantly rise. A window of opportunity also exists when there is a temporary stock mispricing in the market, which will be corrected as soon as traders become aware.

RELATED TERMS
  1. Theory Of Price

    An economic theory that contends that the price for any specific ...
  2. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  3. Macroeconomics

    The field of economics that studies the behavior of the aggregate ...
  4. Microeconomics

    The branch of economics that analyzes the market behavior of ...
  5. Initial Offering Date

    1. The date at which a security is first made available for public ...
  6. Forex Spread Betting

    A category of spread betting that involves taking a bet on the ...
Related Articles
  1. Trading Is Timing
    Forex Education

    Trading Is Timing

  2. Buy-And-Hold Investing Vs. Market Timing
    Investing Basics

    Buy-And-Hold Investing Vs. Market Timing

  3. Capitalizing On Seasonal Effects
    Active Trading Fundamentals

    Capitalizing On Seasonal Effects

  4. Take Advantage Of Dollar-Cost Averaging
    Insurance

    Take Advantage Of Dollar-Cost Averaging

comments powered by Disqus
Hot Definitions
  1. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  3. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
Trading Center