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 ?
Perhaps because of the increasing availability of broker research on the internet, they are taking profits and reinvesting rather than following the herd.
The banking giant, still 71% owned by the taxpayer, made PS392m between July and September, taking profits so far this year to PS1.3billion.
An analyst said, 'The question here is how sustainable these profits are and I think what people here are doing is taking profits slightly because the stock has developed well in recent months.'
To ensure that investments continue to perform, taking profits has become essential for an increasing number of investors.
"Ahead of Wednesday's publication of the Fed's meeting minutes, market players are clearly taking profits while they can.
"The small fall that we're seeing is due to dealers taking profits on the previous days' gains," Michael McCarthy, chief market strategist at CMC Markets in Sydney, told AFP.
Yesterday we recommended taking profits from recent short futures positions or using a protective buy stop in the 1442.00 area.
Oil traders were taking profits after an overnight rally saw US crude prices rise as high as $99.84, said Ker Chung Yang, commodity analyst for Phillip Futures.
VTB Capital analyst Andrey Kryuchenkov said that traders were "taking profits," adding that sentiment was also hampered by Japan's ratings downgrade.
Louis also induced selling, with some investors taking profits in recent gainers, briefly pushing down the Dow more than 110 points, they added.
First of all, there is evidence that the early, more aggressive hands among foreign investors are taking profits, and this is nowhere more apparent than in the sell-off of the banks.