discounting the news

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Discounting the news

An adjustment of a stock's price as speculators bid the price up or down in anticipation of news about the company, whether good or bad.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Discounting the News

Describing a situation in which the market has already incorporated expected information into the price of a stock. That is, if a company's earnings are large for a particular quarter, it may leak the information so that investors discount the news, reducing the pressure for an unsustainable jump in price when the earnings are actually announced. For this reason, the Federal Reserve issues statements indicating what policy changes it might make before it makes them, allowing the markets to adjust before the announcement.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

discounting the news

Adjusting a security's price so that it already reflects some anticipated event or series of events. For example, a stock price may be unaffected by a favorable earnings report because the report was expected. Likewise, a bond's price may not fall on a rating downgrade because investors anticipated the downgrade and had priced the bond to discount the event.
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.
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Investors thus discounted the news flow of International Monetary Fund team's visit next month to finalise the bailout package.
He reminded that the entire world had lauded the efforts and sacrifices as laid by Armed Forces, and strongly discounted the news in western press regarding Taliban ties and support by Pakistan as baseless and based on false and ridiculous assumptions.
Investors in the region seemed to have priced in Obama's victory and hence discounted the news. European shares in midday traded lower ahead of a soft opening on Wall Street as investors booked some profits after Obama's victory.
Investors who had earlier discounted the news of the Cabinet's policy statement in their trading patterns, saw an opportune time to make gains.
But Sam Maezama, permanent secretary of Solomon's Department of Infrastructure, discounted the news reports suggesting a name change was the idea of a Japanese consulting firm.