Period of digestion
(redirected from Periods of Digestion)Period of digestion
The time period of often high volatility after a new issue is released when the trading price of the security is established by the market.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Period of Digestion
The time during which the price of a new issue's early trading on the secondary market fluctuates significantly. The period of digestion occurs as the market attempts to determine the new issue's appropriate market price.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved