2006-06-21 04:56:36 · 2 answers · asked by joeycray 1 in Business & Finance ➔ Investing
It's when an analyst advises that a stock will probably go down in price, so if you have any, they think you should get rid of it.
2006-06-21 05:30:01 · answer #1 · answered by Allen 3 · 0⤊ 0⤋
Broadly speaking, analysts give three ratings: Buy; Sell; and Hold.
Each self-explanatory. However there has been much discussion about giving a Sell rating, especially if the previous rating was a Buy. Imagine this scenario: a company president (for one) owns options for 1 million shares that are "in the money". Within minutes or hours, a Sell rating can cause his options to be (temporarily) worth nothing, zilch, zero. Is that how an analyst wins popularity contests? Analysts hate to give Sell ratings, although their job may require just that; they hesitate and are criticized for it.
2006-06-23 17:06:28 · answer #2 · answered by Puzzleman 5 · 0⤊ 0⤋