Question

If your stock is declining should you sell it?

If your stock is declining should you sell it?

Homework Answers

Answer #1

Not necessarily, if the investment has been done for long term then holding the stock might give greater value. This decline might be short term as a knee jerk reaction to economic factors affecting the entire market. If the fundamental ns the financial ratios of a company are very strong eventually it will rise in the long run.
However, if the stocks are declining due to company specific problem like long strikes, breakdown in a particular factory it is advisable to sell the stock. If investment is for a short term then you might think of selling it.

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