Play

AAA

DEFINITION of '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 phrase used by beginner investors signifying that they have gained access, simulated or real, to the ups and downs of the stock market.

BREAKING DOWN 'Play'

Investing in a stock is in no way a guarantee; there will be information supporting and going against any decision. The word "play" describes the reasons that support the choice. Much like a football play, a decision is made using the given information at the time. Finding out if it was the right play will be determined at a later time.

"Play" is used both conversationally and in investing articles, and usually describes an investment decision. For example, take a look at the statements below, which reflect those typically made by investors.

Q:
"Why did you buy that stock?"

A1
: "It was a book value play, because the stock was trading well below its book value."
A2: "It was a longterm real estate play, because I believe the property value will increase over the next 10 years."
A3: "It was an infrastructure play on developing nations, because the company builds roads in developing countries."

RELATED TERMS
  1. Wild Card Play

    Having the right to deliver on a futures contract at the last ...
  2. Valuation

    The process of determining the current worth of an asset or company. ...
  3. Asset Play

    An incorrectly-valued stock that is attractive because its combined ...
  4. Asset Valuation

    A method of assessing the worth of a company, real property, ...
  5. Pure Play

    A publicly traded company that is focused on only one industry ...
  6. Momo Play

    A slang term used to describe an advanced trading strategy based ...
Related Articles
  1. Forex Education

    Playing The Gap

    Learn how you can earn money by analyzing the disruptions in normal price patterns.
  2. Options & Futures

    Handicap The Market, Rack Up Gains

    Investing on Wall Street and gambling on The Strip are not as different as they may seem.
  3. Investing News

    The Brief: Where Is the Bottom?

    Where is the market going today after yesterday's bumpy ride?
  4. Investing

    Finding Value in the Selloff Rubble

    Globally and in the United States, stocks are now in correction mode, with the recent erosion in equities in emerging markets and Europe in a bear market.
  5. Investing Basics

    6 Smart Strategies to Invest Your Extra Cash Now

    The world's stock markets are shaky, to say the least. Should you hold onto your cash or bargain hunt?
  6. Investing Basics

    What is a Public Company?

    A public company has sold stock to the public through an initial public offering (IPO) and that stock is currently traded on a public stock exchange.
  7. Investing Basics

    Learn About the New York Stock Exchange

    The New York Stock Exchange (NYSE) is nicknamed the “Big Board,” and for good reason. It’s the largest, oldest and best-known stock exchange in the world.
  8. Brokers

    Explaining Market Orders

    A market order is the most common order used to purchase a financial security.
  9. Economics

    The Stock Slump: Is it Just Rate Jitters or Worse?

    Headlines are attributing the market's sell-off to the potential of a Fed rate hike, but that's only a very remote possibility. Here's why.
  10. Mutual Funds & ETFs

    What's The Difference Between Bond & Equity ETFs?

    Learn how different stock ETFs and bond ETFs are, though they actually have quite a few things in common.
RELATED FAQS
  1. What is a pure play?

    A pure play is a company that invests its resources in only one line of business. As such, this type of stock has a performance ... Read Full Answer >>
  2. Where do penny stocks trade?

    Generally, penny stocks are traded through the use of the Over the Counter Bulletin Board (OTCBB) and through pink sheets. ... Read Full Answer >>
  3. Where can I buy penny stocks?

    Some penny stocks, those using the definition of trading for less than $5 per share, are traded on regular exchanges such ... Read Full Answer >>
  4. How does the stock market react to changes in the Federal Funds Rate?

    The stock market reacts to changes in the federal funds rate in various ways depending on where it is in the business cycle. ... Read Full Answer >>
  5. What are the requirements for being a Public Limited Company?

    The requirements for an entity to be considered a public limited company (PLC) include registration requirements, establishing ... Read Full Answer >>
  6. Is there a difference between financial spread betting and arbitrage?

    Financial spread betting is a type of speculation that involves a highly leveraged derivative product, whereas arbitrage ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Tiger Cub Economies

    The four Southeast Asian economies of Indonesia, Malaysia, the Philippines and Thailand. Tiger cub economy indicates that ...
  2. Gorilla

    A company that dominates an industry without having a complete monopoly. A gorilla firm has large control of the pricing ...
  3. Elephants

    Slang for large institutions that have the funds to make high volumes trades. Due to the large volumes of stock that elephants ...
  4. Widow's Exemption

    In general terms, a widow's exemption refers to the amount that can be deducted from taxable income by a widow, thereby reducing ...
  5. Wedding Warrant

    A warrant that can only be exercised if the host asset, typically a bond or preferred stock, is surrendered. Until the call ...
  6. Marlboro Friday

    A reference to Friday, April 2, 1993, when Philip Morris, the maker of Marlboro cigarettes, announced that it would be cutting ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!