Play

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. Asset Play

    An incorrectly-valued stock that is attractive because its combined ...
  2. In Play

    A slang phrase used to describe a firm who has become a potential ...
  3. Take A Report

    A slang phrase signifying that an individual's trade order has ...
  4. Free and Clear

    A slang phrase describing the situation of someone when he or ...
  5. Investment Analysis

    The study of how an investment is likely to perform and how ...
  6. Pure Play

    A publicly traded company that is focused on only one industry ...
Related Articles
  1. Investing

    Stock Market Simulators: Play Your Way To Profits

    Online stock simulators make learning about stocks as fun and easy as playing a game.
  2. Trading

    Simulator How-To Guide

    A stock simulator allows you to use fake money on real stocks. Learn how to buy a stock watch the result.
  3. Financial Advisor

    Asset Manager Ethics: Acting With Competence and Diligence

    Managers must make investment decisions based on their personal investment process, which in turn should be based on solid research and due diligence.
  4. Markets

    Book Value: How Reliable Is It For Investors?

    In theory, a low P/B ratio means you have a cushion against poor performance. In practice, it is much less certain.
  5. Markets

    Single Play E&P Operators

    There are several E&P companies that are putting the majority of capital budgets into single oil and gas plays.
  6. Trading

    How Do You Use Stock Simulators?

    Stock market simulators let you pick securities, make trades and track the results-all without risking a penny.
  7. Investing

    Five Minute Investing: Replacing Stock Market Myths

    In the introduction to "Five Minute Investing", I mentioned that the ideas and approaches developed in this book would be unorthodox. In this chapter, I hope to point out and correct a few of ...
  8. Investing

    Five Minute Investing Tutorial

    A tutorial for people who want to manage their portfolios aggressively without having it consume their lives.
  9. Markets

    One Thing to Never Do When the Stock Market Goes Down

    We could all use a little reminder.
  10. Investing

    Value Investing: Managing The Risks In Value Investing

    Although value investing properly executed is a low-to-medium-risk strategy, it still comes with the possibility of losing money. This section describes the key risks to be aware of and offers ...
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 Answer >>
  2. What are the differences between investing in real estate and stocks?

    Invest in real estate by purchasing physical property or buildings, or invest in stocks by buying a claim to a company and ... Read Answer >>
  3. I am a beginner in buying stocks, where do I begin?

    I am 18 years old trying to start a small investment in stocks. I’m looking at starting with about $200 and gradually ... Read Answer >>
  4. What is the difference between capital investment decision and current asset decision?

    Learn how capital investment decisions are long-term funding decisions, while current asset decisions are short-term funding ... Read Answer >>
  5. How can I make equity investments in real estate?

    Invest in real estate equity through buying and selling real property or through other more liquid investments like real ... Read Answer >>
  6. What does asset management mean in regards to real estate?

    Find out what role asset managers play in the real estate markets, how real estate portfolios are selected and why entrepreneurial ... Read Answer >>
Hot Definitions
  1. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  2. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  3. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  4. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  5. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  6. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
Trading Center