headline risk

(redirected from Headline Risks)

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.
References in periodicals archive ?
Faltering under mounting macro risks and pressured by significant headline risks, the KSE-100 index continued its FYTD tumble, slipping 7.1%WoW to close at 29,429pts, dropping below the physcological 30K mark after a span of five years.
She is concerned that strategic pivot, regulatory and headline risks will negatively impact Facebook's valuation more than investors currently believe due to the negative flywheel effect of these factors influencing the exit of more executives, Martin tells investors.
HG copper broke higher following several months where supply worries helped offset the headline risks associated with the US-China trade war and weaker economic data.
One thing to note is that international investors should consider economic fundamentals over the headline risks that spur from the Middle East.
Some show of support may be warranted to avoid headline risks and pressure on the currency, or even talk about the peg being sustainable."
"Discussion on headline risks (persistent noise on political polarization, the drug war, martial law, charter change, etc.) and how they seem to have a negative impact on the Philippines' scores for rule of law," Moody's said.
Headline Risks: Consumers are looking to have food products using genetically modified organisms (GMO) labelled as such, which may cut into demand for Monsanto's traits.
Health care stocks are "a good opportunity beyond headline risks," and tech stocks should benefit from growth and value characteristics," writes Doll.
But for many audit committees today, these headline risks are also driving a slower-moving--yet critically important--trend potentially impacting the audit committee's effectiveness: agenda overload.
Citigroup, in reporting on the trend, found that animal welfare is so important to consumers, failing to address it can present "headline risks" to food operators.
A report released by Scott Wren, senior equity strategist at Wells Fargo Advisors, said that headline risks are the type of risks that investors should be aware of.
We need to be cognisant of the fact that high gasoline prices and headline risks can put a damper on consumer confidence and consumer spending.”