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 ?
AAA Securities head of research Christopher Mangun said most of the profit-taking happened right before the close.
Dubai: Dubai index snapped a four day gaining streak on Thursday as property stocks witnessed mild profit-taking.
However, profit-taking and negative sentiment over no change in the capital gains tax regime dragged the index lower.
However, profit-taking was witnessed during the second half of the trading session.
Profit-taking in cement sector continued for the second day in a row.
Julius Baer stick to their bearish short-term view, and see oil prices at risk from further profit-taking. Although the futures market positioning by hedge funds has become less stretched on the long side, there are still significant bets on increasing oil prices, which bear the risks of 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 3.35%.
However, the index didn't sustain its aggressive rise after profit-taking ensued before afternoon close and went back to 7,337.93.
KUWAIT, Aug 14 (KUNA) -- The Kuwait Stock Exchange (KSE) ended the trading week slightly down on Thursday due to waves of profit-taking of several shares that were on the rise over the two previous weeks.
Summary: Oil prices extended losses on profit-taking in Asian trade Friday following sharp gains powered by ...
Summary: Oil prices extended losses on profit-taking in Asian trade Friday following sharp gains powered by the US central bank's pledge to retain its massive bond-buying programme, analysts said.
dollar fell slightly to the mid-101 yen level Tuesday morning in Tokyo on profit-taking after gaining ground overnight on better-than-expected U.S.