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 ?
The media reports that the National Accountability Bureau (NAB) has requested the Ministry of Interior to place names of former prime minister Nawaz Sharif, his daughter Maryam Nawaz and son-in-law capt (R) Safdar on the Exit Control List (ECL) as the Sharif family is facing three NAB references and an increasing pressure on foreign exchange have pushed the investors to turn to profit taking.
If profit taking moved prices, then all sellers would ask P2,000 per share for every issue and buyers would have the choice to 'take it or leave it.
Fertiliser stocks also witnessed profit taking after reports that gas supply from the Sui Northern Gas Pipelines Ltd network would be cut, dealers said.
We see the stock as a candidate for profit taking and see better possibilities for profit in other stocks," the broker said.
Profit taking and weak turnover characterized trading, the report said, as real estate stocks witnessed the steepest declines in share prices, down 2.
Stocks came under pressure on profit taking following recent gains that sent the Dow posting a 1.
In London, some of yesterday's biggest climbers fell victim to profit taking, including drugs company AstraZeneca, off 15p to 2304p, and GlaxoSmithKline falling 5p to 1188p.
Perhaps in an attempt at profit taking, but as the equity's decline has been gradual in scope rather than sudden, the likelihood of a mass profit-taking campaign is reduced.
35 points despite profit taking to close at 10,187 dealers said.
New York stocks ended almost unchanged Thursday as profit taking eroded most of the morning gains traced to less-than-expected job losses last week.
A well know Swiss bank was out calling for a more dovish BOE and ECB on Thursday, which also was seen forcing some mild profit taking on long Euro and Sterling positions.