Profit taking


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Profit taking

Action by short-term securities traders to cash in on gains created by a sharp market rise, which pushes prices down temporarily but implies an upward market trend. See: Ring the [cash] register.

Profit Taking

The act of selling a large quantity of security immediately after it has spiked in price, such that the seller will realize a great deal of capital appreciation. For example, suppose one buys a security at $5 and it suddenly rises to $15, and an investor sells the security. If enough investors do this, it can cause a significant, but temporary, drop in price. However, technical analysts see it as a signal of an uptrend. It is also called taking profits.

profit taking

The general widespread selling of securities or of a particular security after a significant price rise as investors realize, or take, their profits. Although profit taking depresses prices, it does so temporarily. The term usually implies that the market is trending upward. Also called taking profits.

Profit taking.

Profit taking is the sale of securities after a rapid price increase to cash in on gains.

Profit taking sometimes causes a temporary market downturn after a period of rising prices as investors sell off shares to lock in their gains.

References in periodicals archive ?
Fertiliser stocks also witnessed profit taking after reports that gas supply from the Sui Northern Gas Pipelines Ltd network would be cut, dealers said.
Profit taking and weak turnover characterized trading, the report said, as real estate stocks witnessed the steepest declines in share prices, down 2.
Stocks came under pressure on profit taking following recent gains that sent the Dow posting a 1.
50% softer on robust profit taking as investors dumped property sector stocks, dealers said.
In London, some of yesterday's biggest climbers fell victim to profit taking, including drugs company AstraZeneca, off 15p to 2304p, and GlaxoSmithKline falling 5p to 1188p.
31%, due to profit taking and generally lower regional markets lowering investor sentiment, dealers said.
As Harmon has been saying for the past several sessions the market looks to be letting off steam, with profit taking and summer doldrums softening prices overall.
But investors stepped up profit taking later in the day in view of the recent uptrend, leaving the Dow index skidding lower.
59% lower after profit taking in selected bluechips, dealers said.
Shares of Hutchison Whampoa brought the Hong Kong market down on profit taking.
Profit taking focused on high-tech issues, which had risen at an accelerated pace recently, market analysts said.
61% lower on profit taking in blue chips after their recent rally, with gains in second liners limiting the overall decline.