overreaction

Definition

Tendency of investors and traders to overreact to a company's announcement or newly released information. These actions suddenly inflate or deflate a stock's value, but only temporarily, until the impact of the announcement wanes and the stock returns to its fair market price.

Use overreaction in a sentence

Related Terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
overrated Fed speak