down·​side | \ˈdau̇n-ˌsīd \

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

One downside could be that Microsoft already has its own gaming business and its own console, Xbox. Theodore Schleifer, Recode, "Who could buy Discord? Acquirers have been giving the gaming startup a long look.," 21 Nov. 2018 One downside to the European antitrust model is that can lead to outcomes that are bad for consumers. Matthew Yglesias, Vox, "Amazon’s looming challenge: Europe’s antitrust laws," 21 Sep. 2018 The one downside to the update situation is that HMD doesn't provide an official way for users to unlock the bootloader and update the device themselves. Ron Amadeo, Ars Technica, "Nokia 6.1 Review—The best answer to “What Android phone should I buy?”," 13 July 2018 The downside of the American approach is that subsidiaries are wedded to a business model that proved itself in completely different circumstances. The Economist, "Chinese and US tech giants go at it in emerging markets," 5 July 2018 Confidence: Medium The one possible downside to this weekend could be the cool front lingering into Saturday morning, with some cloud cover and showers/storms. Matt Rogers, Washington Post, "D.C.-area forecast: Mid-90s with higher humidity today, but nicer weekend ahead," 3 July 2018 One downside is the Sox used their 2016 first-round pick on catcher Zack Collins, who has advanced to Double-A Birmingham., "White Sox zeroing in on group of seven prospects for No. 4 draft pick," 7 May 2018 But there is one downside to that proximity to furry awesomeness: pet smells. Esquire, "Here's How to Finally Get Pet Smells Out of Your Car," 21 June 2017 The potential downside of that is that bots are not necessarily a force for evil; bots can help amplify emergency alerts, for example. Jennifer Ouellette, Ars Technica, "Study: It only takes a few seconds for bots to spread misinformation," 21 Nov. 2018

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

1930, in the meaning defined at sense 1

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Last Updated

11 Dec 2018

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The first known use of downside was in 1930

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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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