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 ?
It is this extended period of digestion, absorption and elimination that provides the battleground for bacterial microorganisms to play a major role in keeping our defense mechanisms free of disease.
In part this is due to Barroso's destiny in presiding over a period of digestion - assimilating ten new member states, and convincing Europe's citizens to endorse the political ambitions that heads of government have signed up to in the Constitution.
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.