overbought

overbought definition - finance
A trading condition in which a stock or other financial instrument has had a quick run up in its price, making the price higher than it should be. A market with prices that are too high is said to be overbought, and the prices may decline in a correction. The opposite is oversold.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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