Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Heavy

What it is:

In the investing world, heavy refers to a security whose price can't seem to rise.

How it works (Example):

Let's say Company XYZ has been trading between $12 and $15 a share for the last six months despite two quarters of good earnings. We might say the stock is heavy.

Why it Matters:

Sometimes individual securities aren't the only things that are heavy; the whole market can be heavy. In those cases, the imbalance of buyers and sellers can create an opportunity to buy certain worthy stocks while they are "on sale." However, some technical analysis might find that a heavy market reflects investor hesitancy about the market and could be the precursor to a market that is about to take a big dip.