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Gap

AnalyticsTrade Team
AnalyticsTrade Team Last updated on 26 Apr 2023

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Gap

Gap is a financial term used to describe the difference between the current price of a security and its target price. It is a measure of the potential upside or downside of a security. The gap can be used to identify potential trading opportunities, as well as to assess the risk of a security. Gap analysis is a tool used by investors to identify potential opportunities and risks in the market.

History of the Term

The term “gap” was first used in the financial markets in the early 1900s. It was used to describe the difference between the current price of a security and its target price. The term was popularized by the work of Benjamin Graham, an American economist and investor who is widely considered to be the father of value investing. Graham used the term to describe the difference between the current price of a security and its intrinsic value. He argued that the gap between the two could be used to identify potential trading opportunities.

Comparison Table

Security Current Price Target Price Gap
Stock A $50 $60 $10
Stock B $20 $30 $10
Stock C $30 $20 -$10

Summary

Gap is a financial term used to describe the difference between the current price of a security and its target price. It is a measure of the potential upside or downside of a security. Gap analysis is a tool used by investors to identify potential opportunities and risks in the market. For more information about this term, you can visit websites such as Investopedia, The Balance, and Investing.com.

See Also

  • Intrinsic Value
  • Value Investing
  • Price Target
  • Technical Analysis
  • Price Momentum
  • Price Support
  • Price Resistance
  • Price Channel
  • Price Gap
  • Price Reversal

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