Gap Risk

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Gap Risk

The risk that a stock will fall dramatically in price from one trade to the next. For example, gap risk is the possibility that one will lose on an investment if a stock falls from, say, $120 to $95 per share in a single trade. This only occurs when there is a significant and sudden drop in demand for the stock.
References in periodicals archive ?
This is because market moves are generally without the gap risks thatare present in some other markets.
Internal audit can play a key strategic role in assessing programs -- such as recruiting and retention initiatives, HR IT systems, and deployment of data analytics capabilities to monitor trends -- designed to mitigate the anticipated talent shortage and skills gap risks.
The threat to chemicals, among the most energy-intensive industries, shows how the widening cost gap risks inflicting further pain on a UK industrial sector that's yet to recover from the financial crisis.
2 billion -- the largest in history -- grows over time, the gap risks widening even further between those with opportunity and those without.