melt up

Definition

A dramatic upturn of certain stocks occurring when investors unexpectedly purchase these stocks and drive their price up without any specific reason, logic or improvement in economic conditions. A melt up reflects a mass mentality where it appears that investors do not want to miss out on making a possible profit. This is usually followed by a meltdown.

Use melt up in a sentence

You should always hope to get in before the melt up so that you can get all of the profits from it.

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The melt up was witnessed as people were deciding to go long and invest all of their assets in the new tech company.

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If you want to make sure that you are maximizing your returns look for some stocks that might be approaching a melt up.

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