What is Value Trap?
A stock that has experienced a large price depreciation and is mistaken to be a value stock. Read more for examples and further explanation including related video clips and also comments
Example explains Value Trap
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.
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