Hello Accelerated Math Students! As part of your Quarter 2 investment project, you will post on this blog using your holiday pseudonym. You will also comment on two other posts. EXTENDED DUE DATE: SUNDAY DECEMBER 11, 2016. The grades are now finished for the blog.
Friday, December 2, 2016
What I Learned About Investments
I learned from Investopedia.com that when you want to invest in a company, you need to wait until the company's lock up period is over. A lock up period is when people who already own stock in the company aren't allowed to sell it. Usually it lasts for 90 to 180 days. It helps stabilize the stock price and when the stock's price and demands are up, it makes more money. It also helps the market to not disproportionately increase the supply, preventing the decrease of the stock's price.
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what does it mean to sell a stock?
ReplyDeleteIt means to sell the share of the ownership of a certain company.You will own a part of the company if you buy it.
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ReplyDeleteWhen you sell a stock that means you are selling a piece of the company. (company's equity). Investors/shareholders buy stocks.
ReplyDeletehttp://www.investopedia.com/articles/investing/082614/how-stock-market-works.asp
I learned from your blog that a company has a lock up period that usually last about 90-180 days, but why can't stock owners sell or share their stocks?
ReplyDeleteStock owners can sell their stocks, but they can't do it during the lock up period. The lock up period gives it time for the stock price stabilize.
ReplyDeleteThank you for informing me that investors should wait until a lock up period is over so they can earn more money
ReplyDeleteLearning about the lock up period was very interesting. Thank you for sharing.
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