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

On the downside, Ultimate Rewards has offered just a single transfer bonus in its 10-year existence: 30 percent to British Airways from April to June 2019, but here's to hoping there's more to come. Eric Rosen, Condé Nast Traveler, "The Best Credit Cards With Transferable Points," 26 June 2019 On the downside, the first challenge that proves unsuccessful will result in a minor penalty. Kevin Paul Dupont,, "Devils select Jack Hughes at No. 1 in NHL draft," 21 June 2019 On the downside, each coach’s challenge that proves unsuccessful will result in a minor penalty. John Wawrow, The Denver Post, "NHL expands video review after calls missed in playoffs," 20 June 2019 On the downside, that means pollinators such as bees and butterflies are scarce. Meg Jones, Milwaukee Journal Sentinel, "Yeah, we know it's been cold and rainy in Wisconsin. Blame the jet stream.," 17 June 2019 On the downside, traditional incandescent bulbs produce a lot of heat, only last 1 to 2 years, and consume more electricity than any other type of bulb. Joseph Truini, Popular Mechanics, "Let There Be Light: A Smart Buyer’s Guide to Light Bulbs," 14 June 2019 On the downside, the Focus is smaller on the inside than competitors such as the Honda Civic. Washington Post, "Edmunds: Discontinued cars offer value but should you buy?," 5 June 2019 On the downside, genes associated with intelligence were correlated with a higher risk for autism. Ann Gibbons, Science | AAAS, "Hundreds of new genes may underlie intelligence—but also autism and depression," 25 June 2018 The downside of that policy is that when the economy turns south, as occurred during and after the recession of 2007-09, the state has been left with budget problems. Laura Hancock,, "Are the days of Ohio tax ‘rebates’ over? Capitol Letter," 19 June 2019

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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Last Updated

10 Jul 2019

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Time Traveler for downside

The first known use of downside was in 1905

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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



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

Rhyming Dictionary: Words that rhyme with downside

Thesaurus: All synonyms and antonyms for downside

Spanish Central: Translation of downside

Nglish: Translation of downside for Spanish Speakers

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