Reaction

Reaction
A reversal in the movement of a security's price. Reaction is most often associated with a downward movement in the price of a security after a period of upward movement, as investors sell off shares or decrease the volume of buy orders for fear of the security being overvalued. Reactions are likely to be mild and lead to a slight increase or decrease in price, rather than a large change in value. A reaction is similar to a correction but lacks the same intensity.

Reactions are generally considered to be positive for the overall health of the market, since unending price increases can cause inflation or result in an even larger price drop if a company doesn't meet expectations. A reaction is likely to prevent events such as runs or high volume sell offs at later dates.


Investment dictionary. . 2012.

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  • réaction — [ reaksjɔ̃ ] n. f. • 1690; de re et action I ♦ Sc. 1 ♦ Mécan. Force qu un corps agissant sur un autre détermine en retour chez celui ci. Principe de l égalité de l action et de la réaction (énoncé par Newton) :un corps qui exerce sur un autre une …   Encyclopédie Universelle

  • Reaction — Réaction Cette page d’homonymie répertorie les différents sujets et articles partageant un même nom …   Wikipédia en Français

  • Reaction — Re*ac tion (r[ e]*[a^]k sh[u^]n), n. [Cf. F. r[ e]action.] 1. Any action in resisting other action or force; counter tendency; movement in a contrary direction; reverse action. [1913 Webster] 2. (Chem.) The mutual or reciprocal action of chemical …   The Collaborative International Dictionary of English

  • Réaction! — Réaction ! Réaction ! Saison 1 Épisode n°16 Titre original The Peanut Reaction Code de production 116 1e diffusion aux É. U. 12 mai 2008 …   Wikipédia en Français

  • Réaction ! — Réaction ! Saison 1 Épisode n°16 Titre original The Peanut Reaction Code de production 116 1e diffusion aux É. U. 12 mai 2008 …   Wikipédia en Français

  • reaction — Since the later part of the 20c reaction has been used to mean little more than ‘first impression’ or ‘initial response’: • ‘I became more and more infatuated with that image as I grew older,’ Rowan said and looked at me for some kind of reaction …   Modern English usage

  • reaction — (n.) 1610s, from RE (Cf. re ) again, anew + ACTION (Cf. action) (q.v.). Modeled on Fr. réaction, older It. reattione, from M.L. reactionem (nom. reactio), from L.L. react , pp. stem of reagere react, from re …   Etymology dictionary

  • reaction — I (opposition) noun backfire, backlash, challenge, clash, conflict, contradiction, contrariety, countertendency, differences, disagreement, disapprobation, discountenance, expression of disapproval, objection, offset, polarity, protest, rebound,… …   Law dictionary

  • reaction — [n1] response acknowledgment, answer, attitude, backfire, backlash, back talk*, boomerang*, comeback, compensation, counteraction, counterbalance, counterpoise, double take*, echo, feedback, feeling, hit, kick, kickback, knee jerk*, lip*, opinion …   New thesaurus

  • Reaction — (v. lat.), 1) so v.w. Gegenbewegung, Gegendruck, Gegenwirkung, d.h. eine rückwirkende Thätigkeit, welche überall stattfindet, wo entgegengesetzte Kräfte einander entgegen wirken u. sich ins Gleichgewicht zu setzen suchen. 2) Die Erscheinung, daß… …   Pierer's Universal-Lexikon

  • Reaction — Reaction, Gegenwirkung, Gegenbewegung …   Damen Conversations Lexikon

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