Fundamental value in the context of "Inherent"

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⭐ Core Definition: Fundamental value

In finance, the intrinsic value of an asset or security is its value as calculated with regard to an inherent, objective measure. As a distinction, the asset's price is determined relative to other similar assets.The intrinsic approach to valuation may be somewhat simplified, in that it ignores elements other than the measure in question.

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Fundamental value in the context of Speculation

In finance, speculation is the purchase of an asset (a commodity, goods, or real estate) with the hope that that asset will become more valuable in a brief amount of time.The term can also refer to short sales, in which the speculator hopes for a decline in value.

Many speculators pay little attention to the fundamental value of a security and instead focus purely on price movements. In principle, speculation can involve any tradable good or financial instrument. Speculators are particularly common in the markets for stocks, bonds, commodity futures, currencies, cryptocurrency, fine art, collectibles, real estate, and financial derivatives.

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