Profit Taking
Profit taking usually refers to selling a security after it has seen some appreciation to realize gains(it could also refer to traders covering stocks after some decline in a security’s price but this is not seen often in the stock market).
The term is often used in financial media to explain a small drop after a security has experienced a relatively large increase. This is usually blabber though and may be used as a convenient explanation with no basis.
Related Terms
- P Terms
- Called Away
- Core Inflation
- Structured Investment Vehicle-SIV
- Vulture Fund
- Annual Percentage Yield-APY
