What is a bag holder stock?

What is a bag holder? A bag holder is a person who holds on to a stock all the way to $0 despite signs along the way that the stock needed to be sold. Bag holder stocks are also known as value traps, meaning that the stock seems like a value when in reality it is worthless.

What is a bag holder?

A bag holder is an informal term used to describe an investor who holds a position in a security that decreases in value until it descends into worthlessness. In most cases, the bag holder stubbornly retains their holding for an extended period, during which time the value of the investment goes to zero.

What is a bag holder in investing?

Bag holder in investing refers to a person who invests in a poorly-performing financial asset and holds on to it until it has no value left. They hope that the stock price will rebound, ignoring the sell signals. Individuals can become bag holders if they do not want to accept that they purchased the wrong security.