Meaning CONTRARIAN: An investment style that leads one to buy assets that have performed poorly and sell assets that have performed well. There are two possible reasons this strategy might work. The first is a mean-reversion argument; that is, if the asset has deviated from its usual level, it should eventually return to that usual level. The second reason has to do with overreaction. Investors might have overreacted to bad news sending the asset price lower than it should be
More terms such as Contrarian in Dictionary C.
- Definition Country Financial Risk:
- Examples Centers around the ability of a national economy to generate enough foreign exchange to meet payments of interest and principal on its foreign debt contrarian definition.
- Definition "Cannot Complete":
- Examples In the context of general equities, inability to finish an order on a principal or agency basis, given prevailing price instructions and/or market conditions contrarian explain.
- Definition CMO REIT:
- Examples of Real Estate Investment Trust investing in the residual cash flows of Collateralized Mortgage Obligation (CMOs). CMO cash_flows are derived from the difference between the rates paid by the contrarian what is.
- Definition Conversion Premium:
- Examples The extent by which the conversion price of a convertible security exceeds the prevailing common stock price at the time the convertible security is issued contrarian meaning.
- Definition Closing Transaction:
- Examples Applies to derivative products. Buy or sell transaction that eliminates an existing position (selling a long option or buying back a short option). Antithesis of opening transaction contrarian abbreviation.
