Desde Investopedia

TERM OF THE DAY

Value Investing Value investing is an investment strategy where stocks are selected that trade for less than their intrinsic values. Value investors actively seek stocks they believe the market has undervalued. Investors who use this strategy believe the market overreacts to good and bad news, resulting in stock price movements that do not correspond with a company's long-term fundamentals, giving an opportunity to profit when the price is deflated.

Breaking it Down: Undervalued stocks come about through investor irrationality. Typically, value investors seek to profit off this irrationality by selecting stocks with lower-than-average... Read More