When particular securities are perceived to be ____ by the market, their prices decrease when they are sold by investors.

Question

Quizplus · Accepted Answer

When securities are perceived to be overvalued by the market, it means investors think the current price is higher than the actual value of the security. Therefore, selling these securities would likely lead to a decrease in their prices as the market adjusts to a more accurate valuation.

When Particular Securities Are Perceived to Be ____ by the Market