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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Overbought

Definition:

What happens to a market when there are too many buyers.

According to financial journalists, it means that there need to be more sales.

But some financial pros think there's no such thing as overbought, since lots of buying affects market prices and eventually leads to selling...so it all sorts itself out in the end.