Business, Legal & Accounting Glossary
An evaluation of a stock’s expected performance and/or its risk level as judged by a rating agency such as Standard and Poor’s. A stock rating will usually tell the investor how well a stock’s market value relates to what analysts believe is a fair value for the stock, based on an objective evaluation of the company. The greater the amount by which the fair value exceeds the market value, the more highly recommended a buy the stock is. Conversely, if the market value of the stock exceeds the fair value of the stock, then analysts recommend that the stock be sold. Most stock rating systems give stocks one to five stars, with five being best. While some investors use a particular analyst’s stock ratings as guidance, it is important to evaluate the criteria which they use to determine fair value, since the techniques they use are diverse and not all analysts are equally competent.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Stock Rating are sourced/syndicated and enhanced from:
This glossary post was last updated: 16th November, 2021 | 0 Views.