Stock Price Trigger Definition & Application Wiki
Last Updated by WikiWealth
A stock price trigger is information that will drive the stock price either up or down quickly. Triggers are the most important opportunities and threats listed in the swot analysis for each individual company.
In general, if SWOT opportunities are greater than SWOT threats, the stock investment price should raise; the opposite is also true. For more precise measures, examine each SWOT opportunity and threat, then rank them according to importance and timing. The more important the investment characteristic, the greater the impact on stock direction. The sooner that investment characteristic may occur, the more influence it will have on stock price direction.
For example: high gas prices might hurt (negative trigger) car manufacturing companies, but may help (positive trigger) oil companies. Therefore, if gas prices increase, then these stocks will react to the changes, but in different ways.