There are certain considerations that investors should take into account to decide when to sell a stock
21-Jun-2022
When is the right time to sell a stock? This has always been a dilemma for investors. Most of the time investors either prematurely sell a good stock or continue to hold a bad stock. But the truth is that stock price and cost should not matter while selling a stock. What matters is how strong the company is and whether the valuations make sense. It is important for investors to control their emotions and be patient as only that will reward investors in the long run. While there are no hard and fast rules for this, there are some things to consider when you are thinking of selling a stock:
The factors mentioned above can also be considered in combination as most of the time one may affect the other. For example, a consistent decrease in profitability can be a result of a company's out-of-trend products or the auditor reporting lack of disclosure may be due to bad management quality. The source for all of these factors is the annual report as it consists of everything, from the chairman's message to the management discussion and auditor's report, and more.
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