overbought

[oh-ver-bawt]

overbought Definition

a condition in which the price of a stock or other security has risen too steeply and too fast in relation to its underlying fundamentals, and is therefore vulnerable to a sharp decline.

Using overbought: Examples

Take a moment to familiarize yourself with how "overbought" can be used in various situations through the following examples!

  • Example

    The stock market is overbought and due for a correction.

  • Example

    The company's shares were considered overbought by many analysts.

  • Example

    The overbought market conditions led to a sell-off in the tech sector.

overbought Synonyms and Antonyms

Synonyms for overbought

Antonyms for overbought

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Summary: overbought in Brief

'Overbought' [oh-ver-bawt] describes a situation where the price of a stock or security has risen too quickly and too high compared to its underlying value, making it vulnerable to a sharp decline. It is often used in financial contexts, such as 'The stock market is overbought and due for a correction.' Synonyms include 'overpriced,' 'overvalued,' and 'inflated,' while antonyms include 'oversold' and 'undervalued.'