Let's assume that Company XYZ announces that far exceed ' expectations. This information could serve as a catalyst that kick-starts trading in the and changes its perception from a 'dog' to a 'star' among investors. Catalysts can drive an up or down. A favorable event can push a stock to new heights, but if events turn sour, the exit for these can be very narrow and very crowded. Let's take the example of a classic investment catalyst: adverse press publicity. A fundamentally strong company can get unfairly beaten up by the press and by analysts, driving down its stock price to unjustified lows. In this case, the catalyst would signal a great opportunity for investors to buy, not sell. Catalysts can change the perception of a security. Xone k2 traktor mapping for maschinen. They can be almost anything: releases, favorable or unfavorable economic reports, management changes, new products, product recalls, successful (or unsuccessful) marketing campaigns, lawsuits, etc. Quite often, catalysts are the news or events that finally attention to fundamentals or other intrinsic that have existed for some time in a security. When investors can identify what events or information will be catalysts for a particular security, they essentially are able to predict which way the security will go if and when the information becomes public knowledge. However, catalysts must be considered within the context of strategy. Investors buy when they anticipate the will rise; they sell when they anticipate the market will fall. Catalysts are only one in the equation. Catalyst for sth An outside leader is often needed to serve as a catalyst for change. A catalyst to (do) sth The Government will act as a catalyst to promote creative collaboration between businesses.
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