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

Name: 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 statement is true. Investors aim to buy stocks when they believe they are priced lower than their true value, in order to sell them later at a profit when they believe the stock is priced higher than its true value.

Investors Purchase a Stock When They Believe That It Is