BROWSE

Headline Risk

What is 'Headline Risk'

The possibility that a news story will adversely affect a stock's price. Headline risk can also impact the performance of the stock market as a whole.

Explaining 'Headline Risk'

For example, in the aftermath of the housing crisis, mortgage lenders such as Bank of America, JP Morgan Chase and CitiGroup faced significant headline risk.


One way a company can mitigate headline risk is through effective public relations campaigns. Successful public relations efforts can promote positive images of a company that can help counteract any negative stories as well as provide swift damage control if such a story is released. Individual investors can counteract headline risk by using a buy-and-hold investing strategy that ignores the short-term changes in the market that are triggered by headlines.





Further Reading


Catering to investors through security design: Headline rate and complexity
academic.oup.com [PDF]
… Such crisis episodes lead to daily headlines in financial newspapers such as “Risk Aversion Rises … are the episodes that are reported on in the news under the headline “risk aversion.” It … During this period, greater willingness to take on risk dampens measured risks and tends to …

Are oil price news headlines statistically and economically significant for investors?Are oil price news headlines statistically and economically significant for investors?
www.tandfonline.com [PDF]
… Such crisis episodes lead to daily headlines in financial newspapers such as “Risk Aversion Rises … are the episodes that are reported on in the news under the headline “risk aversion.” It … During this period, greater willingness to take on risk dampens measured risks and tends to …

Stock price reaction to news and no-news: drift and reversal after headlinesStock price reaction to news and no-news: drift and reversal after headlines
www.sciencedirect.com [PDF]
… Such crisis episodes lead to daily headlines in financial newspapers such as “Risk Aversion Rises … are the episodes that are reported on in the news under the headline “risk aversion.” It … During this period, greater willingness to take on risk dampens measured risks and tends to …

Headline Risk: Unexpected Price Changes and Answering to the Folks at the Top.Headline Risk: Unexpected Price Changes and Answering to the Folks at the Top.
search.ebscohost.com [PDF]
… Such crisis episodes lead to daily headlines in financial newspapers such as “Risk Aversion Rises … are the episodes that are reported on in the news under the headline “risk aversion.” It … During this period, greater willingness to take on risk dampens measured risks and tends to …

Asian Miracle, Asian Tiger, or Asian Myth? Financial Sector and Risk Assessment through FSAP Experience: Enhancing Bank Supervision in ThailandAsian Miracle, Asian Tiger, or Asian Myth? Financial Sector and Risk Assessment through FSAP Experience: Enhancing Bank Supervision in Thailand
papers.ssrn.com [PDF]
… Such crisis episodes lead to daily headlines in financial newspapers such as “Risk Aversion Rises … are the episodes that are reported on in the news under the headline “risk aversion.” It … During this period, greater willingness to take on risk dampens measured risks and tends to …

The last temptation of riskThe last temptation of risk
www.jstor.org [PDF]
… Such crisis episodes lead to daily headlines in financial newspapers such as “Risk Aversion Rises … are the episodes that are reported on in the news under the headline “risk aversion.” It … During this period, greater willingness to take on risk dampens measured risks and tends to …


Leave a Reply

Your email address will not be published. Required fields are marked *