Underpriced Meaning: Definition, Examples, and Translations

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underpriced

[ˌʌndərˈpraɪst ]

Definition

^{Context #1 | Adjective}

stock market

Priced lower than the actual value or market price.

Synonyms

cheap, underestimated, undervalued.

Which Synonym Should You Choose?

Word	Description / Examples
underpriced	Used when talking about something being sold for less than its actual worth, often in markets or financial contexts. The company's stock is underpriced, making it a good investment opportunity. This antique vase is underpriced; it's worth much more than the seller is asking.
undervalued	Typically used to describe something or someone that is not appreciated at its true worth, not limited to financial situations. He felt undervalued at his job, so he started looking for a new position. The artist's work was undervalued during his lifetime.
underestimated	Often used when someone's abilities or the importance of something is not fully recognized or valued. She underestimated her own skills and was surprised when she got the job. People often underestimate the power of a good education.
cheap	Commonly used to describe something that is low in cost or quality. It can have a negative connotation when referring to poor quality. I bought a cheap shirt, but it fell apart after one wash. They sell cheap toys that break easily.

Examples of usage

The company's shares are underpriced, making it an attractive investment opportunity.
The underpriced stock quickly gained the attention of investors.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Economics

In market economics, products can be underpriced due to poor marketing, lack of awareness, or misjudgment of demand.
Underpricing can stimulate demand, leading to increased sales volume, even if profit margins are smaller.
However, consistently underpriced products can hurt companies in the long term, as they might not cover production costs adequately.

Behavioral Psychology

People often perceive items as more desirable when they are underpriced due to the fear of missing out (FOMO).
Cognitive biases, such as the 'anchoring effect,' make consumers compare unreasonably low prices with higher reference points, influencing purchase decisions.
Bargain hunting has been shown to trigger a sense of satisfaction and achievement in buyers, potentially overriding standard economic reasoning.

Marketing

Underpricing strategies are frequently used in startups to attract customers quickly and build market share.
Limited-time offers or flash sales often create a sense of urgency and can make products feel underpriced temporarily.
Luxury brands sometimes use underpricing for select items to create buzz and excitement among consumers.

Real Estate

In real estate, properties that are listed underpriced can lead to bidding wars, ultimately raising the selling price beyond market value.
Underpriced homes can attract investors looking for bargains, changing the dynamics of property value metrics.
Listing a home at an attractive underpriced point can capture more initial interest, leading to quicker sales.

Origin of 'underpriced'

Main points about word origin

The term 'underpriced' is formed from 'under,' meaning less than, and 'priced,' which relates to the amount of money something is worth.
It has been used in English since at least the 19th century, reflecting economic discussions about the value of goods.
The prefix 'under-' suggests not just a lower price but conveys a sense of being undervalued.

The term 'underpriced' originated in the context of the stock market, where it refers to a situation in which a security is priced lower than its true value or market price. This can create opportunities for investors to buy assets at a discounted price, hoping for their value to increase in the future. The concept of underpricing can also be applied to other products or services that are sold below their perceived worth. It is important for investors and consumers to carefully evaluate the reasons behind underpricing to make informed decisions.