Rational investors purchase a stock when they believe that it is undervalued and sell when they feel that it is overvalued.

Name: Rational investors purchase a stock when they believe that it is undervalued and sell when they feel that it is overvalued.
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Question

Quizplus · Accepted Answer

This is a basic principle of value investing, where investors try to buy stocks at a price lower than their intrinsic value and sell them when they reach their fair value or become overvalued.

Rational Investors Purchase a Stock When They Believe That It