Asset Play

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Dictionary Says

Definition of 'Asset Play'

An incorrectly valued stock that is attractive because its combined asset value is greater than its market capitalization.
Investopedia Says

Investopedia explains 'Asset Play'

This type of stock is called an asset play because the impetus for purchase is the fact that the company's assets are being offered to the market relatively cheap. Typically, investors involved in an asset play will buy these stocks in hopes that there will be price corrections causing the market capitalization to increase and thus lead to a capital gain.

Related Definitions

  • Asset

    1. A resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit. 2. A balance sheet item ...
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  • Asset Valuation

    The process of determining the current worth of a portfolio, company, investment, or balance sheet item.
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  • Fundamental Analysis

    A method of evaluating a security that entails attempting to measure its intrinsic value by examining related economic, financial and other qualitative and quantitative factors. ...
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    • Market Capitalization

      The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of ...
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    • Sum-Of-Parts Valuation

      Valuing a company by determining what its divisions would be worth if it was broken up and spun off or acquired by another company.
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    • Technical Analysis

      A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's ...
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    • Valuation

      The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
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    • Play

      A slang term that describes the positive aspects of an investment decision. A play in investing is the reason why an investor made his or her decision. "Playing the stock market" is a ...
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