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.

INVESTOPEDIA EXPLAINS '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. In Play

    A slang phrase used to describe a firm who has become a potential ...
  2. Wild Card Play

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

    The process of determining the current worth of an asset or company. ...
  6. Momo Play

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

    Playing The Gap

  2. Handicap The Market, Rack Up Gains
    Options & Futures

    Handicap The Market, Rack Up Gains

  3. What is a pure play?
    Investing

    What is a pure play?

  4. Spotting A Market Bottom
    Bonds & Fixed Income

    Spotting A Market Bottom

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center