A financially sound firm that has gone public, and then its stock is trading below the price level set in its initial public offering (IPO). In other words, the stock of a fallen angel trades below its issue price in the aftermarket (secondary market).

Fallen angel may also refer to a security (a stock, bond, etc.) or investment that (i.e., its market price) has fallen to an all-time low. In yet a different context, it may imply stocks which used to be high fliers, but have fallen out of favor with investors and other market participants and experienced a steep decline in price.