A subjective measure of how investors are feeling about a security or market. Generally speaking, market sentiments are positive when stock prices are going up and negative when they are going down. Because feelings sometimes change more slowly than a market's underlying fundamentals, market sentiment helps explain why securities have a tendency to become either overvalued or undervalued. Some investors plan to make investment decisions in a way that disregards market sentiment, while others attempt to profit from it. See also: Crowd theory, Subjective probabilities, The Theory of Moral Sentiments.
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.