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stock is overvalued when its expected return is more than investor's required return
true
true
overvalued blow out
Reasonreason
Watered stock is stock that is issued with a price that is much higher than the issuing company's assets. Watered stock can be stock that is overvalued due to excessive issuing or inflated accounting values.
This can be calculated through Q ratio and dividend discount model. The divident discount model is not appropriate for the companies who are issuing any dividend. So the Q ratio is Value of the stock= total market value of the stock/ total value of assets If the value is from 0 to 1 then the stock is undervalued but if the value is above 1 then the stock is overvalued. Ahsan Jamil
The Stock Market of the late 1920s was considered to be overvalued in comparison to the actual value of the member companies. The overvaluation lead to a bobble.
The stock market of the late 1920s was considered to be overvalued in comparison to the actual value of the member companies. The overvaluation lead to a bobble.
Overvalued!
Stocks became overvalued.
Humility and modesty are overvalued