Buy the Rumor, Sell the Fact

(redirected from Buy the Rumor, Sell the News)

Buy the Rumor, Sell the Fact

A catchphrase meaning that positive rumors about a company often cause stock prices to rise (because of increased buying on the part of investors), but then the prices fall (because of increased selling) after actual reports do not bear out the rumors.
References in periodicals archive ?
The report came in roughly in line with expectations and the company boosted guidance, but the stock started selling in the after-hours market -- classic buy the rumor, sell the news action.