Equity Investing
Value Stock
Definition
What is Value Stock?
A share trading at a relatively low valuation compared with fundamentals or peers.
Example in practice
How This Looks in Practice
A profitable insurer selling below book valueThe accounting value of shareholders' equity. may attract value investors.
Keep learning
Related Terms
Equity Investing
Common Stock
A share that usually carries voting rights and a residual claim on a company's profits and assets.
Equity InvestingOrdinary Share
The standard ownership share in a company, generally equivalent to common stock.
Equity InvestingPreferred Stock
A class of share that usually has priority over ordinary shares for dividends and liquidation proceeds.
Equity Capital MarketsInitial Public Offering
The first public sale of a private company's shares, after which the shares may trade on an exchange.