How do glamour stocks differ from value stocks?

Expert Solution

Glamour stocks will the mean that those stocks which will be flavour of the markets and those stocks will be bought by a majority of the investors by herd following and certain fundamental change in the structure of those companies and they will be trying to put out various information to attract whole lot of new investors and such stocks will be the taste of the retail market.

Value stock means those stocks which are having a value in them because their intrinsic value is higher than the current market price of the share and it will make them a good candidate of being bought by various investors because those are value investors and they will be trying to capitalise on the difference between the value and the price of those stocks.

Glamour stocks are generally overpriced stocks because they will be running ahead of the fundamentals and they will be awarded with the higher price to earning whereais value stocks will be awarded a lower price to earning and they will be undervalued stocks.

Example of glamour stock could be Tesla in the current market and example of value stock could be Walmart.

jeff jeffy answered 2 years ago

How do stocks and bonds differ in terms of the future payments that they are expected...

How do stocks and bonds differ in terms of the future payments that they are expected to make? Which type of investment (stocks or bonds) is considered to be more risky? Given what you know, which investment (stocks or bonds) do you think commonly goes by the name “fixed income”? Answer fully and justify your answers.

Which four dimensions of value from the customer can be distinguished and how do they differ...

Which four dimensions of value from the customer can be distinguished and how do they differ from one another? (answer in bullet point summary)

Why retail and institutional investors may become too excited about glamour (or growth) stocks versus value...

Why retail and institutional investors may become too excited about glamour (or growth) stocks versus value stocks? Suggest reasons

In what ways do bonds differ from stocks? Check all that apply. (there are 4 correct...

In what ways do bonds differ from stocks? Check all that apply. (there are 4 correct answers) a) In a bankruptcy, bond holder claims are prioritized while stock holder claims are not. b) Stock dividend payments are discretionary while bond coupon payments are not discretionary. c) Bond holders are guaranteed their coupon payments and principal at maturity while stockholders are not guranteed any payments. d) Bond holders don’t generally vote while stockholders generally do vote. e) Bonds are not...

Question

How do glamour stocks differ from value stocks?

Solutions

Expert Solution

Related Solutions

How do stocks and bonds differ in terms of the future payments that they are expected...

Which four dimensions of value from the customer can be distinguished and how do they differ...

Why retail and institutional investors may become too excited about glamour (or growth) stocks versus value...

In what ways do bonds differ from stocks? Check all that apply. (there are 4 correct...

a) Describe value creation on platforms. How does such value creation differ from value creation in...

How do natural killer cells differ from macrophages?

how do entitlement programs differ from other programs?

how do international markets differ from domestic markets?

Why is fair value critical to U.S. GAAP and IFRS and how do they differ in...

what are the elements of the company value chain (Micheal Porter) and how do they differ...