Bagholder
In U.S. financial slang, a bagholder is a shareholder left holding shares of worthless stocks.[1]
The shareholders could be caught up in a corporate bankruptcy and accounting scandal, as was the case with Enron and Worldcom, or the victims of a pump and dump scheme, in which naive and unsophisticated investors fall victim to e-mail spam, rigged stock tip forums, or other tricks used by stock touts to drive up the shares of worthless penny stocks.
The term has also been applied as a term of derision to real estate investors.[2]
The word is derived by combining shareholder with the expression "left holding the bag."
Real estate investment
If property is bought with the idea to sell it for a higher price, the person who is stuck owning the property is the bagholder.[3]
Holding the bag
The expression "left holding the bag" originated in eighteenth century Britain and spread throughout the English-speaking world.[4] In this context, a person left holding the bag is stuck with the stolen goods, taking the blame from the police while the rest of a criminal gang escapes.
See also
References
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ "Still More Housing Bull," by Seth Jayson, The Motley Fool, Aug. 8, 2007
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
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External links
- Holding the Bag on Bartleby
- [1] winona replied "We Are All The Bagholders" - Health Sciences Group Inc. HESG
