Investopedia

Continue to Site »

Sell

Filed Under » ,
Dictionary Says

Definition of 'Sell'

The process of liquidating an asset in exchange for cash. The term "sell" generally refers to the act of exiting a long position in an asset or security. In investment research, "sell" refers to an analyst's recommendation to close out a long position in a stock because of the risk of a price decline.
Investopedia Says

Investopedia explains 'Sell'

Since the act of selling an investment crystallizes a profit or a loss, depending on the initial purchase price, it may have tax implications for the investor.

Selling is often disdained by long-term "buy and hold" investors in the belief that market averages usually have positive performance over a prolonged period of time. But selling may actually be a prudent course of action in many situations, especially when it needs to be done to rebalance an investment portfolio.

As far as investment research is concerned, the relative dearth of "Sell" ratings by sell-side analysts at broker-dealers is often cited as an example of their lack of objectivity in research.

Articles Of Interest

  1.

    Why There Are Few Sell Ratings On Wall Street

    We outline reasons that may show why enforcing more sell ratings isn't guaranteed to increase Wall Street's objectivity.

  2. Analyst Recommendations: Do Sell Ratings Exist?

    Analyst reports can be an investor's best friend - but without knowing how to read them, you won't be able to fully utilize them.

  3. The Art Of Selling A Losing Position

    Knowing whether to sell or to hold is tough. And no rule fits all. Find out what to consider.

  4. To Sell Or Not To Sell

    Learn some tips on how to exit a position to the best of your advantage.

  5. What does "buy on the cannons, sell on the trumpets" mean?

    All the events and news that happen around the world can have a great impact on the stock market. Very often, if a war breaks out or political problems arise the stock market will take a plunge. ...

  6. Investing In REITs Instead Of Property

    Learn why this one particular REIT is a better investment than holding physical property in your retirement portfolio.

  7. Examples Of Asset/Liability Management

    In its simplest form, asset/liability management entails managing assets and cash inflows to satisfy various obligations; however, it's rarely that simple.

  8. Multi-Asset Funds Or Your Own Mix?

    The underlying concept of mixed funds is very appealing. Discover if you're better off with professional management or creating a mixed fund of your own.

  9. How To Adjust Your Portfolio In A Bear Or Bull Market

    While investors shouldn’t feel compelled to change their portfolios radically overnight in reaction to the market's daily moves, small adjustments in the face of a bull or bear market could be ...

  10. The Truth Behind Tactical ETF Investing

    Are tactical ETFs reasonable and effective investment strategies or just plain speculative behavior?
comments powered by Disqus
Marketplace
Hot Definitions

  1. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  2. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  3. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  4. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  5. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  6. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
Trading Center