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


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