Muppet Bait

Filed Under: , ,
Dictionary Says

Definition of 'Muppet Bait'


Naive investors who are lured into buying hot stocks or securities that the smart money and/or insiders are selling. "Muppet bait" was popularized by Henry Blodget, a former Wall Street analyst and co-founder of news site Business Insider. Individuals and groups who fall under this category often follow news and hype behind initial public offerings, rather than perform their own research.

Investopedia Says

Investopedia explains 'Muppet Bait'


In a May 2012 interview with CNN, Blodget attributed the genesis of the term coined by him to Goldman Sachs' emails, in which they disparagingly referred to their customers as "Muppets." The Goldman emails were mentioned in the course of an op-ed article by a Goldman Sachs executive director in The New York Times on Mar. 14, 2012 titled "Why I Am Leaving Goldman Sachs." The article bemoans the culture at Goldman Sachs as having become one where the only priority is making the most possible money off clients, often by pitching lucrative and complicated products even if these products were not aligned with the clients' goals.
comments powered by Disqus
Hot Definitions
  1. Private Equity

    Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity.
  2. 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.
  3. 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.
  4. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  5. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  6. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
Trading Center