Share Prices
when share prices fall why do people get so paniky & sell off their shares?
If they hold on & the prices fall further down & down till it becomes really somewhere at the bottom.....what would be his financial implication?
& supposing he held on & after a period of time share prices starts soaring ...wouldn't he reap benefits?
What is the actual benefit /loss of holding on to shares specially during down turn....till they start picking up price.
People sell because they believe that the market hasn't bottomed out and they want to sell before they lose any more money. The recommended strategy is: if you are young and have the time, you can wait it out, but if you are near retirement age, you may not have the time to wait for the stock to come back. It took years for the market to recover from the depression of the 1930's.