Glossary Term: OVERBOUGHT
Definition(s) for OVERBOUGHT:
1. ) A term used in general equities, it means technically too high in price, and thus a technical correction is expected.
2. ) Refers to a stock that has risen sharply in price or to the market as a whole after a period of vigorous buying which, it is sometimes said, has left prices too high.
3. ) A term describing a market (or a particular security), which is at an artificially high price level due to excessive buying. When a market (or security) is believed to be overbought, it is also believed to be due for a downward correction. On the other hand, when a market (or security) is believed to be oversold, it is believed that there has been excessive selling and the price is due for an upward correction.
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