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Special Situation

Categories: Investing, Trading

Everyone loves Apple. Or Google. Or TheWhatever.

But then...

Newscasters from across the globe release information that the son of the high-profile CEO of said company has been caught playing the original Donkey Kong arcade version—and everyone's having a crazy freak-out about it. (Don't ask.)

A lot of people then bail out of the stock because of the uproar which is likely to die away in a couple weeks... or days, given that the 24 hour news cycle is nuts.

This incident would be your "special situation." It's a blip in the radar that doesn't have anything to do with the actual valuation of an investment or its tangible future expectations.

Find other enlightening terms in Shmoop Finance Genius Bar(f)