ponyo
Lifer
- Feb 14, 2002
- 19,689
- 2,811
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Yes and no. You don't know what the future price will be. This could drift lower and stay there for decades until GME actually goes out of business. Or maybe Ryan Cohen and his associates will really turn around GME business. But no one knows.The ones who sell now are idiots. It makes zero sense to sell stocks at a loss. Even if the odds of going back up are low, you're still better off holding for the off chance that they do go back up. You don't lose anything as long as you don't sell.
It can make perfect sense to sell stocks at a loss. It's true you don't realize actual loss until you sell or the company goes out of business and shares become worthless. But just because you don't realize actual loss by holding doesn't mean there's not mark to market loss. There's opportunity cost of holding. Even if the stock stops falling and stays at this level forever, you're suffering opportunity cost by holding. While your money is invested in dead money stock, your money could be working elsewhere and making money. You can always use the money you have in GME somewhere else. That's opportunity cost. Everyone has to make a decision whether that cost is worth it or not.
When you hold shares in company in a company that does not pay any dividend, your really not owner of a company in traditional sense. The only way you can profit from holding your shares is if you sell to someone for higher price than what you paid. That's the only way you can make money as shareholder in a company stock that pays no dividend. And stock price rises when there are more buyers and sellers and vice versa. So in a way, stocks are popularity contest. Popular stock price will go up because increased demand and unpopular stock price will fall because less demand. So if a stock pays no dividend, you're really not getting anything out of it other than when you sell your shares for hopefully higher price.