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Bagholder information


In financial slang, a bagholder is a shareholder left holding shares of worthless stocks.[1] The bagholder typically bought in near the peak, when people were hyping the asset and the price was high, and held it all the way through steep declines, losing a large amount of money in the process.

It can also refer to the holder of other assets and financial instruments that become worthless, such as the junior bonds of a defaulted company or the coins of a failed cryptocurrency. The word is derived by combining shareholder with the expression "left holding the bag."

  1. ^ Booth, Richard A. (1998). "Stockholders, Stakeholders, and Bagholders (or How Investor Diversification Affects Fiduciary Duty)". The Business Lawyer. 53 (2): 429–478. JSTOR 40687791. SSRN 149731.

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