All > Business > Finance > Personal Finance
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.
- Browse Related Terms: Bottom fishing, Correction, Double bottom, Double top, Hold, Inefficient market, Momentum investing, Profit taking, Pump and dump, Put-call ratio, Short interest