Undervalued security
Definition:
A security selling below its market value or liquidation value. ...
Undervalued security
A security selling below its market value or liquidation value.
Underwithholding
When a taxpayer has withheld too little tax from salary and will therefore owe tax when filing a return.
Undervalued Security: A stock selling below its liquidation value or below the market value that analysts believe it deserves. Undervalued stocks are sought after for investment before the stock price rises and they become fully valued.
For example, some fundamental analysts use technical analysis techniques to figure out the best time to enter into an undervalued security. Oftentimes, this situation occurs when the security is severely oversold.
This buy signal practice is commonly used and studied as part of Forex trading. As a rule, if the investor buys and the signal is wrong, they are locked into an undervalued security until the market changes and the price increases.
 See also: Security, Trading, Market, Undervalued, Investment
  
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