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


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