What is Catalyst?
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, then that could be a stock catalyst to change the price of the security drastically.