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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Value Investing

Definition:

Value investing is associated with conservative" investing but in practice, that's not always how things pan out. Is it better to own a company trading at a low price to earnings ratio that is dying (would you want to own a bookshelf producing company today at any price?)? Or is it better to pay a high multiple for Facebook? Value investors generally believe that the company's shares will grow either because they will grow earnings and keep their low multiple - or they will be perceived as having better growth prospects and achieve higher multiples."

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