INTERVIEW QUESTIONS INVESTMENT STOCK / EQUITY DETAILS

Question: How does averaging out losses work in financial markets?

Answer: If you are holding on to a company share which is dipping below your purchase price substantially, selling the stock as a knee jerk reaction would offer substantial loss. A better way is to keep purchasing the share at lower levels to bring down the average purchase price of your overall share portfolio for that company.

If you are holding on to a company share which is dipping below your purchase price substantially, selling the stock as a knee jerk reaction would offer substantial loss. A better way is to keep purchasing the share at lower levels to bring down the average purchase price of your overall share portfolio for that company. Source: CoolInterview.com

If you have the better answer, then send it to us. We will display your answer after the approval.

Rules to Post Answers in CoolInterview.com:-

• There should not be any Spelling Mistakes.
• There should not be any Gramatical Errors.
• Answers must not contain any bad words.
• Answers should not be the repeat of same answer, already approved.
• Answer should be complete in itself.

Name :*
Email Id :*
Answer :*
Verification Code	Not readable? Load New Code
Enter the above shown code: *
	Inform me about updated answers to this question