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.
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- Capital Gain, capital gain or loss, Capital gains tax (CGT), Capital loss, Long-term capital gain (or loss), Paper profit (or loss), Profit, Realized gain, Unrealized gain, Unrealized loss
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