Bellwether security

A bellwether security is a security issued by a publicly-held entity whose price tends to be a leading indicator of other securities in the same industry. Thus, if the price of a bellwether security increases or decreases, these changes tend to foreshadow similar changes that will occur later for the rest of the industry.

Investors tend to follow the price movements of bellwether securities in making their investment decisions.

Related Courses

Corporate Cash Management 
Corporate Finance 
Treasurer's Guidebook