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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 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.



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