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

NASDAQ

A US stock exchange specialising in the shares of technology companies.
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Yield

Income from an investment as a percentage of its current price.
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Free Trade

The other free trade. International trade in which countries allow goods to flow across their borders without imposing import or export taxes.
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Over-The-Counter (OTC)

A security that is sold outside of an exchange.
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Investment Return

The amount of money made or lost from an investment. Usually expressed as a percentage.
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Stock Market

A place where shares of publicly listed companies are traded.
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Leverage

A method of trading using borrowed money that usually involves a very high level of risk.
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Costs and Charges

The money you pay when investing.
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Ponzi Scheme

A form of fraud designed to lure new investors, and pays the earlier backers by using the new investors' money.
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