Pig

AAA

DEFINITION of 'Pig'

An investor who is often seen as greedy, having forgotten his or her original investment strategy to focus on securing unrealistic future gains. After experiencing a gain, these investors often have very high expectations about the future prospects of the investment and, therefore, do not sell their position to realize the gain.

INVESTOPEDIA EXPLAINS 'Pig'

Like a pig in the farmyard that overindulges in feed, this type of investor will hold onto an investment even after a substantial movement in the hope that the investment will provide even greater gains.

For example, suppose Joe invests in XYZ Corp. because the stock is undervalued. After the stock doubles its price in two months, Joe holds on to the whole investment, hoping that it will double again in the next two months, instead of selling a portion of the investment to realize a gain. Joe is, therefore, a piggish investor because he is greedy for huge gains and he allows his greed to supersede his original value investment strategy.

RELATED TERMS
  1. Ostrich

    A colloquial term that refers to the tendency of certain investors ...
  2. Sheep

    An investor who lacks a focused trading strategy and trades on ...
  3. Lemming

    The act of an investor following the crowd into an investment, ...
  4. Buy And Hold

    A passive investment strategy in which an investor buys stocks ...
  5. Investment Strategy

    An investor's plan of attack to guide their investment decisions ...
  6. Bull

    An investor who thinks the market, a specific security or an ...
RELATED FAQS
  1. Where did the bull and bear market get their names?

    First of all, let's remember that bears are sluggish and bulls spirited and burly. The terms are used to describe general ... Read Full Answer >>
  2. What is an available seat mile in the airline industry?

    One airline seat available for sale and flown one mile equals one available seat mile (ASM) in the airline industry. A primary ... Read Full Answer >>
  3. Under what circumstances is short selling advisable?

    The practice of selling a stock short only makes sense when the investor anticipates the share price will subsequently drop. ... Read Full Answer >>
  4. What are the differences between a change in accounting principle and a change in ...

    One area where the Fair Accounting Standards Board, the FASB, and the International Accounting Standards Board, the IASB, ... Read Full Answer >>
  5. What are the differences between gross profit and net income?

    When preparing either an income statement or an income tax return for a business, accountants provide calculations for both ... Read Full Answer >>
  6. Type Of Return

    A client asks an IA to calculate what rate of return must be earned to grow $10,000 to $25,000 in five years. The rate of ... Read Full Answer >>
Related Articles
  1. Options & Futures

    Investors: Rely On Your Gut

    Find out how your personality and natural instincts can direct your investment choices.
  2. Active Trading Fundamentals

    Digging Deeper Into Bull And Bear Markets

    Discover why it's important to know the characteristics of the two types of market conditions.
  3. Fundamental Analysis

    Explaining Expected Return

    The expected return is a tool used to determine whether or not an investment has a positive or negative average net outcome.
  4. Economics

    Explaining PFIs and PPPs

    Public-private partnerships (PPP) and Private Finance Initiative (PFI) are two business relationships between government agencies and private businesses.
  5. Economics

    How to Calculate Trailing 12 Months Income

    Trailing 12 months refers to the most recently completed one-year period of a company’s financial performance.
  6. Fundamental Analysis

    Explaining Standard Error

    Standard error is a statistical term that measures the accuracy with which a sample represents a population.
  7. Economics

    Explaining Tangible Net Worth

    Tangible net worth is determined by taking total assets, then subtracting liabilities and intangible assets.
  8. Investing

    Wizards Of Odd: A Trip To Tech Land

    I spent a couple of days in Silicon Valley, and here are some key lessons I learned after meeting with a number of tech CEOs and venture capitalist.
  9. Stock Analysis

    What is the Price-to-Sales Ratio?

    The price-to-sales ratio is an indicator of the value placed on each dollar of a company’s sales or revenues.
  10. Budgeting

    5 Smart Tips For Raising Financially Literate Kids

    Help your children learn to be financially literate with these strategies. Financial savvy begins with what they learn from their parents.

You May Also Like

Hot Definitions
  1. Fixed-Income Arbitrage

    An investment strategy that attempts to profit from arbitrage opportunities in interest rate securities. When using a fixed-income ...
  2. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  3. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  4. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  5. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
  6. Security Market Line - SML

    A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky ...
Trading Center