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, it means that their current market price is higher than what investors believe they are actually worth. This perception leads to decreased demand for the securities, and therefore a decrease in their prices when investors sell them.

When Particular Securities Are Perceived to Be ____ by the Market