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I mean, yeah, but at the same time, stocks are different from inventory because they (can) appreciate in value. Inventory in a store depreciates over time. Th
by saalweachter 5y ago
I mean, yeah, but at the same time, stocks are different from inventory because they (can) appreciate in value. Inventory in a store depreciates over time.
There are two and a half reasons to sell a stock: because you need the cash, or because you think the stock has stopped appreciating and will depreciate going forward.
Once a stock has become a depreciating asset it's really no different than the bedroom set that's been sitting in the corner of the showroom for too long, and before too long they'll be happy to take 50% or 40% or less of what they were originally asking just to get it off their hands, even if they end up selling at a nominal loss at the end.
So I'd argue that a stock being "dumped" really is no different than a printer being sold, but that that doesn't look any better for the stock than the negative term would suggest.
- deleted 5y ago[deleted]