Question

Two years ago, Jack Quack bought 1000 shares of ZMQ stock at $1,000 per share. This...

Two years ago, Jack Quack bought 1000 shares of ZMQ stock at $1,000 per share. This morning when he checked he found that ZMQ stock was selling for $62.00 per share. Advise Jack on what he should do—dump his shares, hold, buy more, what??? (Notes: There have been no stock splits over the past two years. Also ignore tax considerations. And, if it matters, Jack is 15 years from retirement.)

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Answer #1

Answer)

Here I would recommend Jack Quack to hold those shares.

Here,if the share price falls continue after this then till he gain gain even if he sell if the price moves close to $50.Here, the buy more option is not recommended as too much investment in single company can make us lose.If Jack is willing to take risk then he can buy more shares.However, such risk is not recommended as it looks like his retirement investment. The share split will not be an problem as share split may decrease value of share price but not total value.

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