Value trap
This is the current revision of Value trap as edited by Aschlafly (talk | contribs) at 00:14, October 7, 2020. This URL is a permanent link to this version of this page.
A value trap is when a stock appears undervalued and thus a good buying opportunity because its dividend rate is relative high, or it has a low price per earnings ratio.
It is a trap and sometimes a bad investment because the company may have poor growth potential or looming liabilities that are depressing the stock value and could cause it to increase further.