Headline Risk-Courtesy investopedia.com
Muhammad Noman Ansari
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.
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.
:) !Thanks! (:
Best Wishes & Warmest Regards,
Muhammad Noman Ansari