Value Trap
A stock that has experienced a large price depreciation and is mistaken to be a value stock. Investopedia Says:
When a company's stock seems undervalued, investors are sometimes drawn into purchasing it in hopes of a stock price appreciation. 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. Related Terms:
Fire Sale
Stock
Undervalued
Value Investing
Value Stock |