disposition effect

noun

The tendency of investors to sell assets that have increased in value, while keeping assets that have dropped in value.

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Meanings

noundisposition effect (plural disposition effects)

plural disposition effects

  1. businessThe tendency of investors to sell assets that have increased in value, while keeping assets that have dropped in value.

Synonyms & antonyms

Also see
disposition bias
Cite this entry
APA

disposition effect. (n.d.). In WatkinsX Dictionary. Retrieved November 2, 2026, from https://dictionary.watkinsx.com/word/disposition%20effect

MLA

“disposition effect.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/disposition%20effect. Accessed November 2, 2026.

Chicago

WatkinsX Dictionary, s.v. “disposition effect,” accessed November 2, 2026, https://dictionary.watkinsx.com/word/disposition%20effect.

Source: disposition effect on Wiktionary, CC BY-SA 4.0.