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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
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.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
The market was also dragged down by profit taking, another trader said.
While on the other end, oil and gas exploration companies dragged the index as it chipped away 45 points due to profit taking. After last day's significant market participation, on Tuesday activity normalized as traded volumes declined 29 percent to 328m, while traded value fell by 22 percent to $12m.
As forewarned by analysts, the composite ASI turned red close to the end of trading session for the day as the indexes bowed to profit taking pressure, which turned to panic selling.
Technically speaking, the KSE 100 index witnessed another bout of profit taking but managed to bounce off trend line support at 43,100.
The PSEi was down on bargain hunting not profit taking. When prices go lower, it is because
KARACHI -- Pakistan's stocks closed higher on Friday due to a gain in index heavy-weight Muslim commercial Bank, even as profit taking continued in oil stocks.
Dubai -- UAE stock markets witnessed the end of profit taking as they edged up more than one per cent.
Tokyo: Tokyo shares closed down 0.28 percent Tuesday, snapping an eight-day winning streak as late profit taking erased earlier gains.
"We are going to see some profit taking as volumes have come off in the past couple of days.
29 September 2010 - Danske Markets Equities has downgraded its recommendation on Danish brewery group Carlsberg A/S (CPH: CARL B) to "accumulate" from "buy" as it sees risk of share price decrease due to profit taking in the short term.
Summary: Profit taking sell offs erase modest gains by close of trade.
New York stocks turned lower Tuesday on profit taking.