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Definition of 'Knuckle-Buster'

A knuckle-buster is a financial term that refers to a stock that is extremely volatile and has the potential to generate large gains or losses in a short period of time. These stocks are often characterized by high levels of risk and are typically not suitable for investors who are risk-averse.

Knuckle-busters are often found in the small-cap and micro-cap sectors of the market. These stocks are typically thinly traded and have low market capitalizations, which can make them more susceptible to sudden price movements.

There are a number of factors that can contribute to a stock becoming a knuckle-buster. These factors can include:

* A new product or service launch
* A change in management
* A significant acquisition or merger
* A major lawsuit or regulatory investigation
* A change in the company's financial outlook

When one or more of these factors occur, it can cause a stock's price to become volatile and unpredictable. This can make it difficult for investors to determine the fair value of the stock and can lead to large gains or losses in a short period of time.

As a result of their high risk, knuckle-busters are not suitable for all investors. However, they can be a good investment opportunity for investors who are willing to take on the risk in exchange for the potential for high returns.

If you are considering investing in a knuckle-buster, it is important to do your research and understand the risks involved. You should also have a long-term investment horizon and be prepared to hold the stock through periods of volatility.

Knuckle-busters can be a great way to generate high returns, but they are also high-risk investments. It is important to understand the risks involved before investing in these stocks.

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