Friday, June 12, 2015

Term of the Day: Zombies

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June 12, 2015
Zombies

Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to the high costs associated with certain operations, such as research and development. Most analysts expect zombie companies to be unable to meet their financial obligations.

Also known as the "living dead" or "zombie stocks".

Investopedia Explains:

Because a zombie's life expectancy tends to be highly unpredictable, zombie stocks are extremely risky and are not...

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