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Investing & the Stock Market vocabulary · Market News & Sentiment

Profit-taking

Meaning in investing & the stock market, with examples

/ˈprɑːfɪt ˌteɪkɪŋ/nounCommon term

In investing & the stock market, profit-taking means: Selling investments after their price has risen in order to turn paper gains into real cash, which can cause a short fall in prices.

In Turkish: kar realizasyonu, kar satışı, kar alımı

How it is used

A favourite explanation in market reports for a small fall after a strong run: 'stocks slipped on profit-taking'. The verb phrase is 'take profits'. It suggests a temporary pause rather than a change in outlook.

Example sentences

  1. The index fell 1 percent on profit-taking after hitting a record yesterday.

  2. Some profit-taking is normal after such a fast rally.

Common collocations

  • profit-taking pressure
  • slip on profit-taking
  • take profits
  • wave of profit-taking
  • rallyA period of strong and fairly quick rises in prices, either in one stock or in the whole market, often after a fall or a quiet period.
  • correctionA fall in prices of usually at least 10 percent from a recent high, seen as a pause or adjustment after a strong rise rather than the start of a long decline.
  • capital gainThe profit you make when you sell an investment for more than you paid for it. If you sell for less, the result is a capital loss.
  • all-time highThe highest price or level that a stock, index or other asset has ever reached since trading in it began.
  • sell-offA sudden period in which many investors sell at the same time, causing prices of a stock, sector or whole market to fall quickly.

More terms: Market News & Sentiment

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This page explains English vocabulary for learners. It is not financial advice.