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downside

 - 3 dictionary results

down⋅side

[doun-sahyd]
–noun
1. the lower side or part.
2. a downward trend, esp. in stock prices.
3. a discouraging or negative aspect.
–adjective
4. of or involving a decline, esp. in stock prices: The downside risk on this stock is considered far greater than the potential for gain.

Origin:
1675–85; down 1 + side 1
Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2009.
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down·side   (doun'sīd')   
n.  
  1. The lower side or portion.

  2. A disadvantageous aspect: an option with a downside as well as benefits.

  3. A downward tendency, as in the price of a stock.

The American Heritage® Dictionary of the English Language, Fourth Edition
Copyright © 2009 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Financial Dictionary

Downside

The dollar amount by which the market or a stock has the potential to fall.

Investopedia Commentary

You might hear someone say that the downside on stock XYZ is $10. What that means is that the stock could fall by this amount if things got bad. Downside is usually gauged by either fundamental or technical factors.

Related Links

Limiting Losses
Beta: Know the Risk
A Beginner's Guide To Hedging

See also: Bear, Downside Risk, Fundamental Analysis, Risk, Secondary Market, Technical Analysis, Upside, Upside/Downside Ratio

Also spelled: down side, down-side

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