Investor Glossary-value investingInvestor Glossary-value investingInvestor Glossary-value investingInvestor Glossary-value investingInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Value Investing

The HTML to link to this page
 

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...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. 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: inflation, stock split, required rate of return, 144a, option premium, VIX, class C shares, implied volatility, diluted share, average price per share, APR, risk management, deferred revenue, LIBOR, limit order, deferred tax, real GDP, ex-dividend, current ratio, annual return, minority interest, 1031 exchange, stock market close, FICO score, labor relations, per diem, retained earnings, quality assurance, ex-dividend date, FTSE, debt service coverage, liquidity ratio, 401a, command economy, dividends payable, Key Rate Duration, Zero Cost Collar, irrevocable trust, balance sheet, reverse mortgage, open position, 1035 exchange, phantom income, covered put, cancelled check, in escrow, EBITDA, wholly-owned subsidiary, margin rate


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use