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Headline Risk

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Headline Risk
The risk that a company may decline in share price because of negative news coverage. For example, rumors that a company's earnings are declining may cause shareholders to sell their stock. Even if the news itself is not true, headline risk can cause significant volatility for the stock in the short-term. For this reason, companies often price out the news by slowly leaking information before it is announced to minimize surprises and reduce the power of false rumors. See also: CNN effect.

headline risk
The possibility a negative news story will spread to other media outlets and cause a significant change in the value of an investment. For example, an unconfirmed report of a corporate management shakeup might be picked up by competing newspapers and television networks, thus causing a sharp decline in the company's stock price. The firm's stock price is likely to be subject to substantial volatility even though the story eventually proves false.


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With deferred comp in the toilet and headline risk through the roof, who can blame them?
Many people have already taken into account the company’s exposure to both General Motors and Ford, but the headline risk, I think, would be a buying opportunity.
Headline risk in Russia returned with a vengeance over the summer as global oil major BP struggled with its Russian partners over control of its TNK-BP oil company joint venture.
 
 
 
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