(redirected from overbuying)
Also found in: Dictionary.


Used in the context of general equities. Technically too high in price, and hence a technical correction is expected. See: Heavy. Antithesis of oversold.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


In technical analysis, describing a security with too high a price. This means that the technical indicators on the security do not justify its current price. Technical analysts may recommend selling overbought securities, as they are due for a price correction. See also: Oversold.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


Of, relating to, or being a stock market that has risen very rapidly in the recent past and is likely to suffer short-term price declines in the near future. Determining whether a market is overbought is difficult and is subject to individual interpretation.
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.


When a stock or entire securities market rises so steeply in price that technical analysts think that buyers are unlikely to push the price up further, analysts consider it overbought. For these analysts, an overbought market is a warning sign that a correction -- or rapid price drop -- is likely to occur.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
She will be spending Iftar either at her in-laws' or her parents' house and that will help her and her husband avoid overbuying food items.
Labour deputy leader Joan Burton accused the Minister of overbuying credits at a time when the country needs cash.
When overbuying is a reaction to an increase in the actual demand, this is called the bullwhip effect (See Exhibit 1).
Inefficient utilization of heating fuel oil, whether due to overbuying or heating system malfunction, can add thousands of dollars to the fuel bill of a single building.
The information can then be used, for instance, to avoid overbuying software licences, reduce workstation downtime and anticipate technical problems.
In Small Store Success, Ruth Pittman writes, "Overbuying is the No.
Brits waste food worth PS12billion each year by overbuying.
Due to the limited scale and separate operation, the overbuying of stocks has failed to induce the expansion of trading volume, although it has managed to stabilize the market.
It provides up-front savings because customers purchase only the storage capabilities they need for their parti-cular application requirements instead of overbuying to meet "worst case" or "peak demand" needs.
4, 2012 (CENS) -- With the closing of holidays, foreign investors have returned to the stock market, overbuying NT$5.4 billion of Taiwanese stocks yesterday (Jan.