| While quite a bit of time and research | | | | The first reason is having reached your |
| goes into selecting stocks, it is often | | | | financial goals. Once you've reached |
| hard to know when to pull out - | | | | retirement, you may wish to sell your |
| especially for first time investors. The | | | | stocks and put your money in safer |
| good news is that if you have chosen | | | | financial vehicles, such as a savings |
| your stocks carefully, you won't need to | | | | account. |
| pull out for a very long time, such as | | | | This is a common practice for those who |
| when you are ready to retire. But there | | | | have invested for the purpose of |
| are specific instances when you will | | | | financing their retirement. The second |
| need to sell your stocks before you have | | | | reason to sell a stock is if there are |
| reached your financial goals. | | | | major changes in the business you are |
| You may think that the time to sell is | | | | investing in that cause, or will cause, |
| when the stock value is about to drop - | | | | the value of the stock to drop, with |
| and you may even be advised by your | | | | little or no possibility of the value |
| broker to do this. But this isn't | | | | rising again. Ideally, you would sell |
| necessarily the right course of action. | | | | your stock in this situation before the |
| Stocks go up and down all the time, | | | | value starts to drop. |
| depending on the economy…and of course | | | | If the value of the stock spikes, this |
| the economy depends on the stock market | | | | is the third reason you may want to |
| as well. This is why it is so hard to | | | | sell. If your stock is valued at $100 |
| determine whether you should sell your | | | | per share today, but drastically rises |
| stock or not. Stocks go down, but they | | | | to $200 per share next week, it is a |
| also tend to go back up. | | | | great time to sell - especially if the |
| You have to do more research, and you | | | | outlook is that the value will drop back |
| have to keep up with the stability of | | | | down to $100 per share soon. You would |
| the companies that you invest in. | | | | sell when the stock was worth $200 per |
| Changes in corporations have a profound | | | | share. |
| impact on the value of the stock. For | | | | As a beginner, you definitely want to |
| instance, a new CEO can affect the value | | | | consult with a broker or a financial |
| of stock. A plummet in the industry can | | | | advisor before buying or selling stocks. |
| affect a stock. Many things - all | | | | They will work with you to help you make |
| combined - affect the value of stock. | | | | the right decisions to reach your |
| But there are really only three good | | | | financial goals. |
| reasons to sell a stock. | | | | |