Cash Trigger

Categories: Investing, Trading, Banking

An immediate investment action executed by a wise or nervous investor, and perpetuated by the sudden, dramatic increase or decrease of a security’s price.

The price of a security moves and the investor “pulls the trigger” by trading, selling, or buying a security or derivative.

Example. You bought Google 10 years ago on the cheap for $300 per share. While your investment has been steadily growing (good for you), GOOG suddenly spikes to $1,800 per share on news that their parent company, Alphabet, has just announced its purchase of the startup company Soup.

This immense price appreciation, and the fact that your friends would call you a blooming idiot if you didn’t take advantage of this profit, triggers you to sell your position and realize a really big gain. Just don’t spend it all in one place, and don’t forget to invite us to the celebratory happy hour.

Related or Semi-related Video

Finance: What is Cash on Delivery (COD)?41 Views

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Finance a la shmoop what is cash-on-delivery?

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or CoD well if you have a deadbeat buyer who's taken forever to pay you in [Danny Deadbeat laying on sofa]

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the past think remember Popeye and wimpy borrowing money for burgers next Tuesday

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when he actually never pays you'll eventually have to make that customer

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that deadbeat a COD status purchaser well CoD has nothing to do with cheap

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fish rather it stands for cash on delivery like you get cash when the good

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is delivered and it means that the postal person or UPS gal or FedEx dude

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has to collect the cash you are owed before they will actually leave the [Cash transfers to mail people]

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package being shipped at the warehouse on your doorstep or van parked you know

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down by the river if a client has such bad credit or has such a miserable

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payment record that they have to be put on COD status well you may really have

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to re-evaluate your relationship there COD also carries charges and often

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they're big because a postal worker may have to ring the door eight times before [Postal worker ringing door bell]

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finding the deadbeat at home and then even if he is home well it's uncertain

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whether or not he'll have the ready cash to pay for whatever goods he just

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ordered and sometimes you'd have better odds of getting money out of this thing [Pile of fish appear]

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