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 ?
There was profit-taking activity after we saw resistance being built up post high turnover trading," said Marwan Shurrab, fund manager and head of trading at Vision Investments & Holdings, adding "the main focus on Thursday was on banking sector.
The Dow index faced selling throughout the day on profit-taking as it hovered at the highest level in four years and nine months following the consecutive gains, market analysts said.
There was some profit-taking going on, which is normal," said Hashem Ghoneim of Pyramids Capital.
Profit-taking later strengthened, however, once crude futures have hit $69, pushing down oil prices sharply, they said.
46% weaker in profit-taking in bank stocks after recent gains, dealers said.
Also, we have finally learned that when "cut the losers" becomes a distortion of the utilitarian view actually used to increase investor profit, the operational ethic of the organization (exploitative profit-taking, greed) is clearly recognizable even to the most casual observer.
52 at one point before falling back on profit-taking.
Technology stocks, meanwhile, were subjected to ``a little light, uninformed profit-taking,'' said Arthur Hogan, chief market analyst at Jefferies & Co.
41 percent lower on Tuesday after skidding more than three percent the previous day on profit-taking and a stronger yen.
Summary: Tokyo: Tokyo stocks eased on profit-taking Friday morning but analysts said the market was .
Disappointment in Emr results caused profit-taking and saw some foreign buying in Emr's weakness," Anastasios Dalgiannakis, Head of Trading at Dubai-based Mubasher Financial Services told Gulf News.
New York stocks ended mixed Friday, with the Dow index snapping its three-day winning streak on profit-taking.