Business, Legal & Accounting Glossary

Definition: Sentiment

Quick Summary of Sentiment

A view of or attitude toward a situation or event; an opinion.

What is the dictionary definition of Sentiment?

Dictionary Definition

  1. A general thought, feeling, or sense.
  2. uncountable Feelings, especially tender feelings, as apart from reason or judgment.
  3. uncountable Gentle or tender feelings, sometimes of a weak or foolish kind.

Full Definition of Sentiment

Sentiment is a measure of the bearishness or bullishness of market participants. Major market turning points can be accompanied by highly skewed investor sentiment, with extreme bearishness seen at market bottoms and extreme bullishness at market tops.

There are many ways to measure sentiment. A number of surveys track the sentiment of analysts, mutual fund managers, and newsletter writers. When a significant majority of survey respondents share the same sentiment, a market turn may be imminent. For example, the Put/Call Ratio, which measures trading activity in puts and calls, signals high levels of bearish sentiment when put buying is much heavier than call buying. There many other sentiment indicators that measure the sentiment of individual investors, investment advisors, and consumers.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Sentiment. Payroll & Accounting Heaven Ltd. July 09, 2020
Chicago Manual of Style (CMS):
Sentiment. Payroll & Accounting Heaven Ltd. (accessed: July 09, 2020).
American Psychological Association (APA):
Sentiment. Retrieved July 09, 2020, from website:

Definition Sources

Definitions for Sentiment are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th April, 2020 | 0 Views.