down·​side | \ ˈdau̇n-ˌsīd How to pronounce downside (audio) \

Definition of downside

1 : a downward trend (as of prices)
2 : a negative aspect the downside of fame

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Examples of downside in a Sentence

He could find no downside to the car. the downside of living in the country is, of course, the long commute to work
Recent Examples on the Web The downside to rural health care, Faith Community’s leaders say, is a lack of resources. Kevin Krause, Dallas News, "Jacksboro’s ‘lifeblood’ rural hospital feels abandoned during pandemic," 24 May 2020 The downside is that some types can be are slippery when wet, which can makes dish washing tricky. Southern Living, "It Might Be Time to Toss Your Kitchen Sponge for Good," 20 May 2020 The downside is, for beginners, reloading can be confusing, complex—and frankly—a huge pain in the butt. Michael R. Shea, Field & Stream, "How to Get Started Reloading Today," 18 May 2020 But the downside would likely be significantly higher fares—and quite possibly a reduction in business. Timothy B. Lee, Ars Technica, "California sues to make Uber and Lyft drivers employees," 5 May 2020 The downside to the Power Wagon's capability is the Hemi's thirst for refined crude. Scott Oldham, Car and Driver, "2020 Ram 2500 Power Wagon Remains a Hulking Heavy-Duty Off-Roader," 30 Apr. 2020 The downside for outdoor runners is the lack of ambient sound, which also isolates your tunes from the outside world. Will Egensteiner, Popular Mechanics, "The Best Wireless Headphones for the Office, Traveling, and Working Out," 28 Apr. 2020 The downside to having such a visible car was that everybody wanted to borrow it to impress their dates. Mark Phelan, Detroit Free Press, "Ford Mustang at 56: Even the bad one was pretty good," 17 Apr. 2020 The downside for Stefanik and other Republican Trump supporters is that the president also engenders passionate opposition. Jake Bernstein, The New York Review of Books, "The Fundraising Pulpit," 8 Apr. 2020

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

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First Known Use of downside

1905, in the meaning defined at sense 1

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Time Traveler for downside

Time Traveler

The first known use of downside was in 1905

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Statistics for downside

Last Updated

28 May 2020

Cite this Entry

“Downside.” Dictionary, Merriam-Webster, Accessed 29 May. 2020.

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Financial Definition of downside

What It Is

Downside refers to an investment's potential loss in value.

How It Works

Let's pretend you purchase 100 shares of Company XYZ at $5 per share, for a total investment of $500. If the shares subsequently fall to $1 per share, your downside equals ($5-$1 = $4) per share, or $400.

The reverse is true for people who short stocks: For them, upside comes when the stock price falls.

Why It Matters

Downside is the fundamental motive for avoiding any investment. The size of the downside, of course, varies with the investment -- and with the risk associated with that investment. Higher-risk investments generally have more downside (but they have more upside, too); low-risk investments generally have less downside and are thus primarily concerned with preserving the value of the original investment.

Ultimately, expected upside and downside are based on estimates and educated guesses. No analyst or investor can predict the future, thus making upside and downside inherently unpredictable.

Source: Investing Answers


How to pronounce downside (audio)

English Language Learners Definition of downside

: a part of something that you do not want or like : a drawback or disadvantage

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More from Merriam-Webster on downside

Thesaurus: All synonyms and antonyms for downside

Rhyming Dictionary: Words that rhyme with downside

Spanish Central: Translation of downside

Nglish: Translation of downside for Spanish Speakers

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