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