Business, Legal & Accounting Glossary
An investor who is chasing the market purchases securities after a market has already risen or sells securities after a market has already dropped. In other words, investors who are chasing the market tend to buy high and sell low. Investors who take their cue from the actions of other investors often end up chasing the market. Another form of chasing the market involves a fast-moving market. When an investor purchases a security at a higher price than expected or sells for less than expected because the market is moving too quickly this is also known as chasing the market. Investors who are chasing the market are generally exhibiting a “follow the pack” mentality and are guilty of following the market (chasing the market) rather than anticipating market actions.
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This glossary post was last updated: 4th February, 2020 | 12 Views.