buy on the bad news

Definition

An investing strategy where an investor will purchase or invest in a company's stock shortly after hearing negative publicity or negative news about the company. Proponents of this strategy believe that when negative or bad news is released, the company's stock will decrease, hence making the stock undervalued. In the future, when positive or good news is released, the stock will correct itself, allowing the investor to make a profit.
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buy on opening buy order