discounting the news

discounting the news definition - business

discounting the news

Adjusting an asset's price so that it already reflects some anticipated event or series of events. For example, a stock price may be unaffected by a favorable earnings report because the report was expected. Likewise, home prices in a town might not increase much in price following an official announcement of a new company coming to town, because the news was anticipated.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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