| Most investors put substantial time and | | | | affect the price of the stock. Many |
| research into selecting the best stocks | | | | things, all combined, affect the value |
| in which to place their money. However, | | | | of stock. But there are really only |
| it is not unusual to find those same | | | | three good reasons to sell a stock. |
| investors haven't spent a similar amount | | | | The first reason is having reached your |
| of time in determining when to sell or | | | | financial goals. For example, once |
| pull out. This can be especially true of | | | | you've reached retirement, you may wish |
| the first time investor. | | | | to sell your stocks and put your money |
| The good news is that if you have chosen | | | | in safer financial vehicles, such as a |
| the stocks to purchase carefully and | | | | savings account. This is a common |
| wisely, you hopefully won't need to pull | | | | practice for those who have invested for |
| out for a very long time. Maybe even as | | | | the purpose of financing their |
| far in the future as when you are ready | | | | retirement. |
| to retire. | | | | The second reason to sell a stock is if |
| But there will inevitably be specific | | | | there are major changes in the business |
| instances when you will need to consider | | | | you are investing in that cause, or will |
| selling your stocks before you have | | | | cause, the value of the stock to drop |
| reached your financial goals. | | | | with little or no possibility of the |
| You may think that the time to sell is | | | | value rising again. Ideally, you would |
| when the stock value is about to drop, | | | | sell your stock in this situation before |
| and it could be your broker has advised | | | | the value starts to drop. |
| you to do this. However, this isn't | | | | If the value of the stock spikes, this |
| necessarily the right course of action. | | | | is the third reason you may want to |
| Stocks go up and down all the time, | | | | sell. If your stock is valued at $100 |
| depending on the economy and other | | | | per share today, but rises suddenly to |
| factors. And the economy itself has a | | | | $200 per share next week, it could be a |
| relationship with the perceived value of | | | | great time to sell. This would be |
| the stock market. This is why it can be | | | | especially true, if you feel the outlook |
| hard to determine whether you should | | | | is that the value will drop back down. |
| sell your stock or not. Stocks go down, | | | | In this instance, hopefully you're able |
| but they also tend to go back up. | | | | to sell when the stock was worth $200 |
| The best advice is to do more research, | | | | per share. |
| and understand the stability and | | | | If you are new to trading, you should |
| performance of the companies in which | | | | definitely consult with your broker or a |
| you invest. Certain changes in | | | | financial advisor before buying or |
| corporations have a profound impact on | | | | selling stocks. Making the right |
| the value of the stock. For instance, a | | | | decisions at both ends of your |
| new CEO can affect the value of stock. A | | | | transaction can be the difference |
| plummet in the industry can affect a | | | | between profit and loss in your |
| stock. A prospective take-over bid can | | | | investments. |