A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Value StockShares that appear priced below what the company seems worth, which some investors buy hoping for a rebound.
- DividendA portion of a company's profits paid out to shareholders, usually as cash on a regular schedule.
- Price-to-Earnings RatioA stock's price divided by its earnings per share, used to gauge whether it looks expensive or cheap.
- Capital GainThe profit you make when you sell an investment for more than you paid for it.
- Blue-Chip StockShares of large, well-established companies with a long track record of stable performance and reliability.
- StockA share of ownership in a company that you can buy and sell, giving you a small stake in its profits and growth.
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Plain-English education — not personalized legal, tax, or investment advice.