   
|
|
|
|
|
|
| |
Value investing is an investment technique where one buys shares that are believed to be undervalued in hopes that the true (higher) value of the stock will be realized. Therefore, value investing requires more of a long-term outlook. Someone who believes the market overreacts to good and bad news, which can cause stocks to be traded at less than they're worth, might be more prone to value investing. Those who engage in value investing get out when they think the market has corrected the price. To determine if a stock in undervalued, investors who opt for value investing typically look for low price-to-earnings ratios and low price-to-book values. Value investing is not as focused on technical analysis as it is on the stock's fundamentals. This means that value investing examines the stock's current market value and the company's intrinsic value.
Rate this value investing definition...
|
|
|
|
 |
Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day. |
|
Popular Terms: in escrow, stock split, deferred revenue, implied volatility, cancelled check, FICO score, wholly-owned subsidiary, required rate of return, phantom income, 401a, risk management, average price per share, annual return, margin rate, 144a, ex-dividend, 1031 exchange, ex-dividend date, class C shares, covered put, liquidity ratio, retained earnings, debt service coverage, VIX, current ratio, open position, diluted share, option premium, balance sheet, limit order, deferred tax, inflation, reverse mortgage, 1035 exchange, FTSE, LIBOR, per diem, dividends payable, stock market close, irrevocable trust, Key Rate Duration, APR, real GDP, EBITDA, minority interest, labor relations, Zero Cost Collar, quality assurance, command economy
|
|
| |
