Value Stock
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Potential for higher returns: - Value stocks are often undervalued and therefore have the potential for higher returns compared to other stocks that are overvalued. -
Dividend yield: - Many value stocks have a long history of paying dividends, which can provide a steady income stream for investors. -
Low price volatility: - Value stocks are often less volatile than growth stocks, meaning that their price does not fluctuate as much.
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Slow growth: - Value stocks often have slower growth prospects compared to growth stocks, which can result in lower returns for investors. -
Risk of permanent loss of capital: - Some value stocks may never see their true value recognized by the market, leading to a permanent loss of capital for investors. -
Market sentiment: - Market sentiment can also have a significant impact on the performance of value stocks, as investor sentiment can drive the market's perception of a stock's worth.
