Wednesday, April 22, 2009

What does Value Stock and Value Investing Means ?

Value Stock Means a stock which is available at a dirt cheap rate comparing with its previous price or any other fundamental of the stock say it dividend offered, Earnings of the company, etc and is thus considered undervalue by the investor.
Thus a investor buy a value stock when he thinks the future of the stock is bright if compared with its current price.
In Simple words a value stock is a stock which is available at a dirt cheap rate compared with its fundamentals.

Value Investing is a strategy adapted by various investors of buying the stocks when they are available cheaply or at a dirt cheap rate.
It is also a strategy of selecting stocks that trade for less than their intrinsic values.
Typically, value investors select stocks with lower-than-average price-to-book or price-to-earnings ratios and/or high dividend yields.

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