A Catalyst is an event that influences the traders to buy or sell an asset quickly. A catalyst is a news or economic event that provides an impetus for a particular action. Catalysts cause change to happen within a business organization. Catalysts are never an end in themselves; they are always a means to an end. In other words, catalysts are the events that cause investors to take action.For instance, a news release about the discovery of a new technology that could revolutionize a particular industry would be a catalyst for investors in that industry. The development of the product and its successful launch would then become the goals for management.
Catalysts are important because they make it possible for investors to predict when and how much their investments will grow.How do catalysts affect stock prices?A catalyst is an event that influences the traders to buy or sell an asset quickly. A catalyst is a news or economic event that provides an impetus for a particular action. Catalysts cause change to happen within a business organization.