Investor Glossary-bellwetherInvestor Glossary-bellwetherInvestor Glossary-bellwetherInvestor Glossary-bellwetherInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Bellwether

The HTML to link to this page
 

A bellwether stock is a stock that is generally viewed an an indicator of overall market or sector direction. IBM, for instance, is a bellwether stock in the computer sector while Intel is a bellwether stock in the chip sector. A bellwether stock is considered a market trendsetter. Since a bellwether stock is widely perceived as an indicator of market direction, when a bellwether stock in any sector slips, the entire sector may see an overall drop in prices. Conversely, when a bellwether stock goes up in price, an entire sector may ride up on its coattails. Bellwether stocks are generally considered to be blue chip stocks and are typically heavily-traded. The largest bellwether stocks (i.e. Wal-Mart, GE, etc.) are viewed by some investors as a gauge for the entire economy / market.



Rate this bellwether definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: current ratio, quality assurance, labor relations, Key Rate Duration, 1031 exchange, APR, 1035 exchange, open position, LIBOR, phantom income, minority interest, retained earnings, option premium, deferred revenue, class C shares, balance sheet, stock market close, stock split, irrevocable trust, margin rate, average price per share, cancelled check, in escrow, risk management, inflation, FTSE, dividends payable, command economy, required rate of return, Zero Cost Collar, ex-dividend, implied volatility, limit order, 144a, debt service coverage, reverse mortgage, diluted share, wholly-owned subsidiary, per diem, real GDP, covered put, EBITDA, 401a, liquidity ratio, FICO score, ex-dividend date, annual return, VIX, deferred tax


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use