cockroach theory

Definition

A market theory that dictates the occurrence and revelation of subsequent negative events when a company initially reveals bad news publicly. The term was coined based on the theory that when one cockroach is discovered, there are typically many more cockroaches presently hidden nearby.

Use cockroach theory in a sentence

I did not agree with the cockroach theory and I thought the name of it needed to be changed cause it made me laugh.

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The cockroach theory was mentioned during the meeting in reference to the latest announcement, we promptly pulled our investments from the company.

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After our company received some bad news, my boss told us to brace ourselves for other bad news events in the near future under the cockroach theory.

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