A stock that undergoes a sudden or unexpected fall in price, usually in the wake of negative news such as less-than-expected earnings, corruption scandals, looming competition threats, etc. An air pocket stock is metaphorically called so because it is like a plane passing through an air pocket which holds it up and then drops it like a rock. Disgruntled shareholders rush in reaction to announcements of poor results to dump the stock, which usually marks the final phase in a price correction.
December 22, 2023