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Sensitive Market


A market condition that is characterized by magnified (more than proportional) price reactions to both positive and negative news. For example, a biotech company that has a new drug waiting the approval of a drug administration can experience a large fall in its stock price in a very short period of time (in a matter of one day or a few days) if it is not given the approval. Markets that are news sensitive are much riskier than markets which are not.


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