= Neglected firm effect
{wiki=Neglected_firm_effect}
The "Neglected Firm Effect" refers to a phenomenon in financial markets where certain companies, particularly smaller or less well-known firms, tend to be undervalued or overlooked by investors and analysts. This lack of attention can result from a variety of factors, including limited research coverage, lower liquidity, or their status as firms in niche markets. Because these neglected firms do not attract the same level of scrutiny or investment as more widely followed companies, they might be priced lower than their intrinsic value.
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