Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,898,965,453 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Undervalued Security

    0.01 sec.
Undervalued security
A security selling below its market value or liquidation value.

Undervalued Security
A security with a share price lower than its asset value and/or earnings potential. It can be difficult to determine whether or not a security is undervalued, but a low price-earnings ratio is one way to estimate it. A price-earnings ratio below 1 indicates that the security's price is less than the company's earnings per share, which may mean that the company is undervalued. Undervalued companies are often target companies in hostile takeovers. See also: Undervalued, Overvalued.


Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Feedback
Add definition
Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
No references found
 
Justification for selling a significantly undervalued, security might lie in the purchase of an equally undervalued security.
A pair trade takes a long position in a somewhat undervalued security and a short position in a somewhat overvalued security that are correlated.
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.