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headline risk

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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 the uncertainty surrounding the upcoming shareholders' meeting and the headline risk of Lions Gate's prolonged hostile takeover attempt, we would remain on the sidelines until this situation has been resolved.
OFHEO's ongoing forensic investigation of Fannie's accounting promises to be a source of more headline risk during the balance of 2004.
``He's been the main headline risk for the company especially since the resignations of Gold and Disney.
 
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