decouple

verb de·cou·ple \ (ˌ)dē-ˈkə-pəl \
Updated on: 13 Oct 2017

Definition of decouple

transitive verb
:to eliminate the interrelationship of :separate

Examples of decouple in a Sentence

  1. to have a fruitful discussion, we need to decouple fact from opinion

Recent Examples of decouple from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'decouple.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of decouple

1938


Financial Definition of DECOUPLE

decouple

What It Is

Decoupling refers to instances in which security prices behave contrary to normally-occurring correlations.

How It Works

Movements in the price of different securities may be directly or indirectly correlated. In other words, as a given type of security rises in price, the price of another type of security might be expected to fall or also rise depending on its exposure to market dynamics. Decoupling refers to the divergence in securities' expected price behavior vis-à-vis one another.

For instance, the stock and bond prices for a given company generally rise and fall in response to fluctuations in market demand. However, a rise in the price of the stock accompanied by a rise in interest rates causing the market value of the bond to move in the opposite direction would constitute decoupling.

Why It Matters

Investors and analysts rely on security price correlations in order to gauge market trends and help with strategic decisions. Investors and analysts should be aware of discrete changes in market dynamics that might require them to investigate thoroughly such price relationships under certain circumstances.



Seen and Heard

What made you want to look up decouple? Please tell us where you read or heard it (including the quote, if possible).

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!

WORD OF THE DAY

to suppress quietly or indirectly

Get Word of the Day daily email!

Test Your Vocabulary

The Exceptions Quiz III

  • one-green-toy-robot-amidst-many-red-toy-robots
  • Which of these words does not mean "nonsense"?
How Strong Is Your Vocabulary?

Test your vocabulary with our 10-question quiz!

TAKE THE QUIZ
SCRABBLE® Sprint

Test Your Knowledge - and learn some interesting things along the way.

TAKE THE QUIZ

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!