Dip

Slight drop in securities prices after a sustained uptrend. Analysts often advise investors to buy on dips, meaning to buy when a price is momentarily weak. See: Correction, break, crash.

Dip

A small decrease in a security's price after a significant uptrend. Some investment advisers and technical analysts recommend buying after a dip if there are signals that the uptrend will continue afterwards. However, it is sometimes difficult to determine whether a dip is temporary or if it is the beginning of a trend reversal.

dip

A small, short decline in a variable such as the price of a security or interest rates. A broker may advise a customer to accumulate a particular stock on dips. When the security begins declining in price, it is difficult to know if the decline is just a dip or if it is the initial step in a more substantial price reduction.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

DIP

See debtor in possession.

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