eXTReMe Tracker
  ● how to get rich

money guidance and how to get rich_173

Author: money guidance and how to get rich

What does it mean when a financial guru on television

says that a stock is "overbought"?

The term "overbought" suggests that too many people were trying to

buy the stock, sending the share price higher than it should be. The

guru is essentially making a short-term call on a stock price, which

is most likely futile.

Why would a stock close at one price on one day, but then

commence trading the next day a few dollars lower?

Stocks often open higher or lower if there's been some major news

released after the market close the day before. For example, if the underwater

dress shoe company Wet Loafer Inc. (ticker: SQSHY) announced

it was recalling all its wingtips, many more sell orders than

buy orders might accumulate overnight. Before trading begins, the

share price would probably be adjusted southward, to better match

buys with sells.


-
http://digg.com/users/howtogetrich/profile http://www.furl.net/item.jsp?id=17368111 http://www.furl.net/item.jsp?id=17368110 http://www.furl.net/item.jsp?id=17368112 http://reddit.com/user/how-to-get-rich/ http://reddit.com/user/how-to-get-rich/saved.rss