Period of digestion

Period of digestion

The time period of often high volatility after a new issue is released when the trading price of the security is established by the market.

Period of Digestion

The time during which the price of a new issue's early trading on the secondary market fluctuates significantly. The period of digestion occurs as the market attempts to determine the new issue's appropriate market price.
References in periodicals archive ?
Speaking after unveiling better-than-expected half-year profits, TI's chairman Sir Christopher Lewinton said a period of digestion was now necessary.
A period of digestion could still be in the works for the security, barring any advancement of the DIS buyout speculation.
What was expected to be a healthy period of digestion is turning into a serious test of support levels as disappointing jobs numbers and geopolitical events have added a very bearish tone to its movement.