What is a value stock?

The term value stock is also known as undervalued stock and this shares are usually traded at a lower price then the corporation’s actual reputation or financial situation might show. Common characteristics of these stocks are: high dividend yield, low price to book ratio. On the market are those investors who are always on the look out for companies which are trading stocks which are less then they worth and by investing in them they hope that the corporation’s fortunes will turn around and the stock prices will climb so they will make a profit.