The Most Useful and Important Thing to Do Before Trading The Nature of Bond Investors

The Multiple Meanings of Value

Value has many different meanings, so it's important to make sure you understand what the term means when it comes to picking a suitable investment. For some managers, value means companies that are simply trading at steep discounts to other stocks. For others, it means a concentration on those stocks trading in predetermined ranges, perhaps as measured by such indicators as Price/Earnings (P/E) or Price/Book (P/B) ratios. Different definitions can lead to vastly different types of stocks.