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What if the stock crashes in the future? Having a guarantee profit sounds like a pretty good deal for some.
by 14 5y ago
What if the stock crashes in the future? Having a guarantee profit sounds like a pretty good deal for some.
- justapassenger 5y agoGuaranteed profit at the point in time is great for speculators. If you're doing long term investment, realizing profit at random point in time, isn't really that attractive.
- elcomet 5y agoWhat ? Even if you're a long time investor, having an instant 25% guaranteed profit is good as you can sell part of the stock and diversify.
- justapassenger 5y agoIf you follow that logic, each time stock goes after good earnings, everyone should just sell off everything.
- deleted 5y ago[deleted]
- nostrebored 5y agoThey should, provided transaction fees and gains taxes don’t exceed their estimation of the difference in value times the number of stocks adjusted for the time value of money. People with more complicated positions should consider covariance and factor in uncertainty. But if you’re a shareholder in a single stock and estimate that it’s overvalued by a significant margin, the rational choice is to sell your position, invest in a low risk, highly liquid asset, and rebuy.
- outside1234 5y agoMaybe - it depends on the growth prospects of the company - if they were high anyway - then it is better from a capital gains tax perspective to just continue holding the stock until you need the money.
- micromacrofoot 5y agoI sold a lot of bitcoin for $20 in 2008, quadrupled my initial investment and felt pretty smart about it.
- deleted 5y ago[deleted]
- oh_sigh 5y agoGood logic. Never sell anything ever because the price might go up.
- philistine 5y agoNot for Twitter's board. They want more, and good for them. In the history of hostile acquisitions, the first offer is never the final one.