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.

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.

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.

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.

References in periodicals archive ?
Investors started profit-taking on Tuesday as MSCI euphoria settled.
Julius Baer stick to their bearish short-term view, and see oil prices at risk from further profit-taking.
These expectations came after EGX30 rose by 8% on Thursday following the flotation of the pound; however, the EGX then underwent a significant profit-taking process that reduced its gains to 3.
Luis Gerardo Limlingan, managing director at Regina Capital, expects profit-taking to continue, especially during the first two trading days of the week.
There was profit-taking activity after we saw resistance being built up post high turnover trading," said Marwan Shurrab, fund manager and head of trading at Vision Investments & Holdings, adding "the main focus on Thursday was on banking sector.
However, the index didn't sustain its aggressive rise after profit-taking ensued before afternoon close and went back to 7,337.
The Dow index faced selling throughout the day on profit-taking as it hovered at the highest level in four years and nine months following the consecutive gains, market analysts said.
BEIRUT: The Beirut Stock Exchange underwent a week of profit-taking in line with consolidating the rapid rise of the index over the past two months.
Crude oil futures ended sharply lower on late profit-taking after momentarily touching $69 a barrel on Wednesday in New York, with early gains attributed largely to increased uncertainties about Iran's nuclear program as well as continued attacks on oil facilities by insurgents in Nigeria.
For example, should a nation's health care policy include profit-taking opportunities?
9%, on profit-taking to close below the 9,000-point level.
Stocks ended mixed Tuesday, as the Dow Jones industrials moved to record highs amid a return to manufacturing and basic materials stocks, but the Nasdaq composite sank on profit-taking in some technology shares.