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 Comparative Credit Analysis:
- Examples Comparing a firm to others that have a desired target debt rating in order to deduce an appropriate financial ratio target contrarian definition.
- Definition Capital Structure:
- Examples The makeup of the liabilities and stockholders' equity side of the balance sheet, especially the ratio of debt to equity and the mixture of short and long maturities contrarian explain.
- Definition Cash Flow Break-Even Point:
- Examples The point below which the firm will need either to obtain additional financing or to liquidate some of its assets to meet its fixed costs contrarian what is.
- Definition Cross-Sectional Approach:
- Examples A statistical methodology applied to a set of firms at a particular time contrarian meaning.
- Definition Credit Spread:
- Examples derivative products. Difference in the value of two options, when the value of the one sold exceeds the value of the one bought. One sells a credit spread. Antithesis of a debit spread Related contrarian abbreviation.
