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+--- Thread: Reasons for selling shares (/showthread.php?tid=7177)
Reasons for selling shares - doaausef3li - 05-09-2024
Reasons for selling shares
Investors often buy a company's stock because it has a competitive advantage that puts it ahead of competitors in the financial market. But if the situation changes and the company loses its competitive advantage, this means that investors will not continue to hold the stock, which will only increase the situation as a loss.
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Once investors realize the fact that the company is deteriorating or moving in the wrong direction, the performance of the stock will inevitably decline in the financial market. This means that it is better to follow the method of selling shares before it is too late and with smaller losses to avoid the scourge of large losses that will inevitably become a reality once the stock price declines to reflect... Declining company performance.
However, if the stock’s decline is the result of a transient shock in the company’s performance while the fundamentals are still in a solid state, this temporary setback may represent a good opportunity to buy more of the stock when its price declines and before it rises again. Therefore, the assumptions upon which the investor bases his investment decisions must be Resulting from a study and awareness of the size of the company and its ability to overcome temporary crises and recover again.
Another reason that may push investors to sell or give up shares is the emergence of better investment opportunities than current shares. The financial market always presents investment opportunities that cannot be missed, represented by preferred shares available at prices that may not be repeated again. If the investor has the necessary liquidity to seize this opportunity, he may find himself forced to liquidate part of his stock portfolio in order to be able to seize the stock whose growth prospects he believes may be strong in a way that compensates him for the stocks he gave up.