Value Stocks

Stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable.

These are stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable. The stock price might be less than what the company is actually worth.

Investors choose value stocks because they expect the market to realise the true value of the stock over time, and the price will rise.

Value stocks tend to have a lower price-to-earnings (P/E) ratio, pay dividends, and are seen as lower risk with steadier returns. Please keep in mind that no stocks are risk free and you may lose what you put in.

Older, established companies like banks, manufacturers, or consumer goods firms are typically where you will find value stocks.

More terms

Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.
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Account balance

The amount of money a user has stored in a financial repository.
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Balance sheet

A summary of a company's finances, including its assets, liabilities and shareholder equity.
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Net Income (NI)

The money a firm is left with from sales after subtracting taxes and different business costs.
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Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.
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Know Your Customer (KYC)

A legal requirement for financial firms to understand exactly who their customers are. Used to prevent money laundering and terrorist financing.
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Global Investment Performance Standards (GIPS)

A set of standards which investors use to present their investment results.
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Coupon

Also called a dividend, this is the fixed annual interest paid to gilt holders. It’s usually paid in two equal, semi-annual instalments and expressed as a percentage of the nominal value of the gilt.
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Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.
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