Special Situation

Actually any interesting event that could influence the price of a stock, like the announcement of a merger. As a matter of fact, there are whole classes of investors out there that watch certain stocks, just waiting for something to occur.

Features

• There are special situation funds that try to take advantage of such events.
• A special situation is a one-time event that affects a stock or other asset.
• Quite a few events, positive or negative, can make a stock's price pop or push down its price.