Option Investor
Glossary

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Accumulation

A method used for acquiring large amounts of a particular security by purchasing blocks of the stock over time. This is done to avoid having a direct impact on the price of a stock by purchasing a large amount all at once. Another definition of accumulation can be buying in general and can be used to help determine the momentum behind a move made by a stock. Obviously, the greater the rate of accumulation, the greater the momentum.