Analysis of the behavior of growth and value stocks in the financial market

Authors

  • Maria Pia Venegas Venegas Universidad de Valparaíso

DOI:

https://doi.org/10.22370/riace.2013.2.1.2088

Keywords:

Indicators, Financial Market, Value Stocks, Growth Stocks, Economic Contingency

Abstract

This article tries to analyze the behavior experimented by the indicators of value and growth stocks in the financial market during a period of three years (2009-2011). It explains the creation of these indicators, the growth obtained by the companies of these stocks, and makes a comparison between the value stocks and the growth stocks based on the companies’ results. Thus it concludes, that the advice given by the experts regarding the moment of economic contingence to invest in value stocks and not in growth stocks is a way of having less risk to the volatility which stocks present. All this is due to the fact that value stocks have a more stable behavior than those companies which represent the growth stocks. The explanation for it is that these have already reached their growth and recognition, and additionally form part of the IPSA. In the period under study, it is more profitable to invest in stocks which are indexed to this indicator.

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Published

2020-04-01

How to Cite

Venegas Venegas, M. P. (2020). Analysis of the behavior of growth and value stocks in the financial market. Revista De Investigación Aplicada En Ciencias Empresariales, 2(1). https://doi.org/10.22370/riace.2013.2.1.2088

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Section

Articles