It’s led to an explosion in internet searches of some fairly obscure terms that will be unfamiliar to those of us who take more of an interest in the supermarket than the stock market.
To help out, investment experts at InvestinGoal have compiled a list of terms that feature on Succession to give viewers an insight into what Kendall, Shiv and Roman are talking about.
It should be noted that some of these explanations include season four spoilers, so come back later if you’re not up to date on your viewing.
9. Dividend Yield
The dividend yield is a financial ratio that tells you the percentage of a company’s share price that it pays out in dividends each year. Some investors, such as those who are retired, rely on dividends for their income, meaning the dividend yield of their portfolio could have a meaningful effect on their personal finances. After Logan Roy’s passing at the beginning of season 4, the ‘old guard’ of Gerri, Karl and Frank are seen negotiating strategies for the GoJo deal with Lukas Matsson, all with the fear that their own portfolio and finances might be negatively affected by the sudden change in circumstance without Logan. Photo: HBO
10. Dead Cat Bounce
The saying refers to a temporary recovery in share prices after a substantial fall, caused by speculators buying in order to cover their positions. Derived from the famous Wall Street phrase "even a dead cat will bounce if it falls from a great height", dead cat bounce is now applied to any case where there’s a brief resurgence following a severe decline. You may also hear this referred to as a Sucker Rally. Whilst this doesn’t necessarily happen in Succession to the Waystar Royco corporation and it’s respective stock, there have been moments within the show where this was feared, particularly during the cruise fiasco that saw talks take place over which member of the ‘inner circle’ would take the fall and potentially risk time in prison. Photo: HBO
11. Tanking
When you hear the phrase ‘tanking’ or ‘in the tank’, this typically means that a stock has encountered a poor quarterly performance, leading to a price decline shortly after. If someone says their assets are ‘tanking’, it means they aren’t doing great right now. This has occurred in Succession a couple of times, most notably in episode 3 of season 4 after patriarch, Logan Roy passes away, making the ATN stock plummet due to the looming uncertainty of the direction of the company. Photo: HBO
12. Averaging down
There is a common strategy called 'averaging down' which investors use when their investment decisions go against them. ‘Averaging down’ involves buying more shares after they fall in price, lowering the average cost of all the shares held, in the effort to add value to their portfolio. Photo: HBO