Cramer Bounce

It’s pretty wild to wrap your head around the idea that one individual’s recommendations can mess with a stock price too much. Well, unless we’re talking about Warren Buffett, of course.

Turns out, however, that there is another individual who has his own term. “Cramer Bounce,” was coined because of Jim Cramer's ability to affect stock prices. Cramer, from CNBC’s Mad Money, uses some pretty obnoxious theatrics and his unnaturally loud voice to expose the stocks he thinks are real winners. In turn, these stocks sometimes shoot up in price overnight and experience a so-called “Cramer Bounce.”

Related or Semi-related Video

Finance: What is Dead Cat Bounce?13 Views

00:00

Finance allah shmoop What is a dead cat bounce It

00:06

sounds like a dance move from the old west right

00:09

but it actually refers to a terrible situation when the

00:12

market plummets rebounds very slightly and then plummets again The

00:16

idea comes from the notion of dropping a cat off

00:20

of a high building It hits the cement dead bounces

00:23

a bit before then is a big wet thud Yeah

00:27

peeta no cats were harmed in the production of this

00:29

definition Thie market has fallen from five thousand twelve hundred

00:35

now it's at fourteen hundred and now it's back to

00:37

twelve hundred Yeah that uplift of two hundred points there

00:40

from twelve hundred fourteen hundred before it went back twelve

00:43

hundred which is the concrete that's the dead cat bounce

00:48

I'm not totally sure who came up with this term 00:00:50.247 --> [endTime] but wei have a pretty good idea

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