Session 11 | Reading 32 | LOS o    

7 cards

LO o: Compare and contrast the sell disciplines of active investors.


 
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Created Feb 9, 2011
by
lutfallah

 

 
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1
Substitution is
 
replacing an existing security with another with brighter prospects.
2
Considering the transactions costs and tax consequences of the sale of the existing security...
 
opportunity cost sell discipline.
3
After careful research, a manager may also conclude that a firm’s business will worsen...
 
deteriorating fundamentals sell discipline.
4
Other, more technical, selling disciplines are based on rules. For example, in a ___________________,...
 
valuation-level sell discipline
5
In a ________________________________, the manager may sell a stock if its price declines...
 
down-from-cost sell discipline
6
In an _____________________________, the manager may sell a stock once it has increased, for...
 
up-from-cost sell discipli
7
In a ______________________________, the manager determines the stock’s fundamental value...
 
target price sell discipline

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