Play

Dictionary Says

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 Says

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 Definitions

  • Pure Play

    A company devoted to one line of business, or a company whose stock price is highly correlated with the fortunes of a specific investing theme or strategy.
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  • In Play

    A slang phrase used to describe a firm who has become a potential takeover target or has put itself up for sale. Once a bid is made, a company is put "in play" and will often attract ...
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  • Momo Play

    A slang term used to describe an investment purely as a momentum play, not worrying about the company's fundamentals.
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    • Wild Card Play

      Having the right to deliver on a futures contract at the last closing price, even though the contract is no longer trading.
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    • Asset Play

      An incorrectly valued stock that is attractive because its combined asset value is greater than its market capitalization.
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    • Asset Valuation

      The process of determining the current worth of a portfolio, company, investment, or balance sheet item.
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    • 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.
      Read More »

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