Dead Cat Bounce
Dead Cat Bounce is a financial term used to describe a short-lived recovery in the price of a declining stock. It is a phenomenon that occurs when a stock that has been in a long-term downtrend experiences a brief period of recovery, only to resume its downward trend shortly thereafter. The term is derived from the idea that even a dead cat will bounce if it falls from a great enough height.
History of the Term
The term “dead cat bounce” was first used in the late 19th century by British stockbrokers to describe a brief recovery in the price of a stock that had been in a long-term downtrend. The term was popularized in the early 20th century by American stockbrokers, who used it to describe a brief recovery in the price of a stock that had been in a long-term downtrend. The term has since become a popular phrase in the financial world, and is often used to describe a brief recovery in the price of a stock that has been in a long-term downtrend.
Comparison Table
| Term | Definition |
|---|---|
| Dead Cat Bounce | A short-lived recovery in the price of a declining stock. |
| Bull Market | A market characterized by rising prices. |
| Bear Market | A market characterized by falling prices. |
Summary
Dead Cat Bounce is a financial term used to describe a short-lived recovery in the price of a declining stock. It is a phenomenon that occurs when a stock that has been in a long-term downtrend experiences a brief period of recovery, only to resume its downward trend shortly thereafter. For more information on this term, readers can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Bull Market
- Bear Market
- Technical Analysis
- Fundamental Analysis
- Market Cycle
- Market Correction
- Market Crash
- Market Rally
- Market Trend
- Volatility
