Bagholder Wikipedia, the free encyclopedia - Cite This Source
The term bagholder is an informal slang term used in U.S. financial markets to refer to the shareholders left holding shares of worthless stocks. 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.
The word is derived by combining shareholder with the expression "left holding the bag."
Note: as of this posting (2/17/08) Baidu has a market value of $8.8 Billion dollars, a price of over $259/ share and has a P/E of over 121.
Reminds me of Yahoo and hmmmmm looks like they are trading at double digits not triple, Longs are trapped with no out, I wonder when they will announce that they need to hit the market with additional shares in order to grow? Can you longs say dilution?