Definition of Popped

What is a "pop" as it pertains to the world of finance and the stock market? What does the term "pop" or "popped" mean?

When a stock is said to have "popped", that means that the stock has suddenly traded higher after a short period of time.

The term "popped" is often used to describe an IPO (initial public offering) that has quickly traded higher after being made available to the public, but the term can also extend to other stocks as well.

Example: XYZ, Inc. has priced its shares at $28 and is now a publicly traded company. The stock opens for trading at $29.50 and finishes at $35.75 after its first full day of trading.

In this situation, XYZ, Inc. is said to have "popped" due to the fact that it traded substantially higher over a short period of time.

As mentioned, the term "popped" doesn't just apply to IPOs.

For instance, let's say that Google announces stronger than expected earnings. The day after their earnings are announced, Google trades up 15%. Many people will say that the stock "popped" 15% after their earnings were released.

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