Jul 19, 2015
A market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. The term comes from the common belief that seeing one cockroach is usually evidence that there are many more that remain hidden. Read more: http://www.investopedia.com/terms/c/cockroach-theory.asp#ixzz3cTmr7dOr Follow us: @Investopedia on Twitter