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Headline Risk
(redirected from Headline Risks)

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Headline Risk
The risk that a company may decline in share price because of negative news coverage. For example, rumors that a company's earnings are declining may cause shareholders to sell their stock. Even if the news itself is not true, headline risk can cause significant volatility for the stock in the short-term. For this reason, companies often price out the news by slowly leaking information before it is announced to minimize surprises and reduce the power of false rumors. See also: CNN effect.

headline risk
The possibility a negative news story will spread to other media outlets and cause a significant change in the value of an investment. For example, an unconfirmed report of a corporate management shakeup might be picked up by competing newspapers and television networks, thus causing a sharp decline in the company's stock price. The firm's stock price is likely to be subject to substantial volatility even though the story eventually proves false.


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We are pleased to be able to offer our customers the best-of-breed data, content, and tools they need to monitor both the credit and headline risks inherent in structured-finance deals.
We are pleased to be able to offer our customers the best-of-breed data, content, and tools they need to monitor both the credit and headline risks inherent in structured-finance deals.
Nonetheless, the exposure to these headline risks is adequately accounted for in Fitch's analysis, though some investors may be unaware of the absolute magnitude of exposure.
 
 
 
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