Why would someone hold on to a stock?
I need 10 reasons for this academy assignment I am doing. I know the obvious fact is they can be waiting for the price to move about up. But I need other reasons. Help please!
Answers: One point is dividend income streams. Some investors will not be too concerned if the share itself goes up or down in worth as long as dividend continue to rise.
Tax implications. Without knowing your country of residency tariff laws there could be wherewithal gain tax payable when a stock is sold so some prefer to keep a stock for long possession.
Some cannot take a loss as they see it as failure. Wrong pretext to hold a stock but so many do. Some people see the utility of their shares drop and refuse to sell until it returns to sophisticated levels, sometimes even if it is obvious this may never arise. Then one day the share price starts to rise and then some hysterics sell in an hard work to lock in reduced losses. So they do opposite to how they should. Hold on to a falling stock and market in an uptrend. Very, very adjectives.
Emotional attachment. Some people fall within love with their stocks. They just cannot market, becomes part of them. If you drop by a stock market forum and make some distrustful but valid comments on a company the "lovers" soon appear accusing you of downramping and all sorts of horrid conspiracy theories that you are somehow trying to drive the price dowm for some financial benefit. They are in love :)
No long occupancy reason to sell, even if s/p falls long permanent status outlook for the company remains positive so overall the upward trendline over time remains intact.
Fees/research /brokerage. The costs related to some purchases can accumulate if too much buying and selling occurs negating the benefits of swing trading so frequent will just ride out any market fluctuations.
!) They essentially resembling the company, whether being its geographical region or managment etc.
2) they like the the sector, they similar to that its healthcare or biotechnology, they think its a hot spot.
3) they like the industry, or what they do as a company.
4) They similar to that it has a P/E ratio under 20, they perceive its undervalued.
5) they like that its undervalue and contrary to market followers still.
6) theirs alot of hype about the stock contained by the media.
7) the markets are doing in good health and giving steam to he stock.
8) analysts recomend that its a buy still.
9) They feel comfortable holding it.
10) Life dont get any sweet when your holding growing money.
If someone wishes to have a diversified portfolio of assets then they should conspicuously consider holding some stock. A diversified portfolio is recommended as it reduces risk of wild fluctuations contained by your asset base. long term appreciation, the position is currently upside down, dividends, better than a edge account.
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Answers: One point is dividend income streams. Some investors will not be too concerned if the share itself goes up or down in worth as long as dividend continue to rise.
Tax implications. Without knowing your country of residency tariff laws there could be wherewithal gain tax payable when a stock is sold so some prefer to keep a stock for long possession.
Some cannot take a loss as they see it as failure. Wrong pretext to hold a stock but so many do. Some people see the utility of their shares drop and refuse to sell until it returns to sophisticated levels, sometimes even if it is obvious this may never arise. Then one day the share price starts to rise and then some hysterics sell in an hard work to lock in reduced losses. So they do opposite to how they should. Hold on to a falling stock and market in an uptrend. Very, very adjectives.
Emotional attachment. Some people fall within love with their stocks. They just cannot market, becomes part of them. If you drop by a stock market forum and make some distrustful but valid comments on a company the "lovers" soon appear accusing you of downramping and all sorts of horrid conspiracy theories that you are somehow trying to drive the price dowm for some financial benefit. They are in love :)
No long occupancy reason to sell, even if s/p falls long permanent status outlook for the company remains positive so overall the upward trendline over time remains intact.
Fees/research /brokerage. The costs related to some purchases can accumulate if too much buying and selling occurs negating the benefits of swing trading so frequent will just ride out any market fluctuations.
!) They essentially resembling the company, whether being its geographical region or managment etc.
2) they like the the sector, they similar to that its healthcare or biotechnology, they think its a hot spot.
3) they like the industry, or what they do as a company.
4) They similar to that it has a P/E ratio under 20, they perceive its undervalued.
5) they like that its undervalue and contrary to market followers still.
6) theirs alot of hype about the stock contained by the media.
7) the markets are doing in good health and giving steam to he stock.
8) analysts recomend that its a buy still.
9) They feel comfortable holding it.
10) Life dont get any sweet when your holding growing money.
If someone wishes to have a diversified portfolio of assets then they should conspicuously consider holding some stock. A diversified portfolio is recommended as it reduces risk of wild fluctuations contained by your asset base. long term appreciation, the position is currently upside down, dividends, better than a edge account.