Catalyst is used to describe anything that speeds up a rate of reaction or process. In chemistry, it is used to describe a substance that is added to a reaction and increases the rate of reaction. In finance a stock catalyst, is an event, or expectation of an event, that drastically changes the price of a stock. For example if a company releases an earnings report that is drastically different than what is expected than that could be a stock catalyst to change the price of the security drastically.
CFI is a global provider of financial modeling courses and of the FMVA Certification. CFI’s mission is to help all professionals improve their technical skills. If you are a student or are looking for a career change, the CFI website has a multitude of free resources to help you jumpstart your Career in Finance. If you seek to improve your technical skills check out some of our most popular courses. Below are some additional resources for you to further explore: