Value Trap

外汇网2021-06-19 16:12:44 46

A stock that has experienced a large price depciation and is mistaken to be a value stock.

Taobiz explains Value Trap

When a company's stock seems undervalued, investors are sometimes drawn into purchasing it in hopes of a stock price appciation. If stock price is the only factor an investor looks at before buying a stock, he or she could end up with a stock whose value is likely to decline even further.

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