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Dead Cat Bounce

Dead Cat Bounce Definition

Dead Cat Bounce is a slang term, it refers to the small, brief recovery in the price of a declining stock. It originates in the saying: "Even a dead cat will bounce if dropped from high enough!"


Additional meaning of Dead Cat Bounce:

In the financial world it describes the phenomenon when a stock bottoms out to near zero and then recovers due to extensive buying from bargain hunters. After the temporary recovery the market continues to fall.


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