Bargain Stocks

Generally speaking, the purchase of assets for less than their fair market value is considered to be a bargain purchase. A stock that is considered to be a bargain must trade for less than it’s worth based on the per-share value of its assets. But judging value or worth of a stock also involves a matter of opinion about such things as the potential for growth of sales, earnings, cash flow, etc. Selecting stocks that are perceived to be a bargain is also known as value investing.