Informal; an
investment strategy that involves
selling a
stock when its company announces good news. Selling on the good news assumes that the
price of the stock rises, sometimes dramatically, on the good news. This is a minor variation on the
buy low, sell high investment strategy, in that it assumes that the good news always causes the price to rise, and that the price will fall again soon thereafter. To some extent, selling on the good news also assumes that the
market has not
priced out the news prior to the announcement.