answersLogoWhite

0

The value of a portfolio may decrease when the stocks are increasing in price if the portfolio owner is making bets that the stocks will decrease in price. One way to do this is by short selling ('shorting') a stock. This essentially means you borrow the stock and then immediately sell it, in the hope that the stock will decrease in value so you can buy it back at the lower price (the opposite of buying a stock and hoping for an increase in value).

User Avatar

Wiki User

16y ago

What else can I help you with?

Related Questions

What is the best investment option: 401k or stocks?

The best investment option depends on your financial goals and risk tolerance. A 401k is a retirement account offered by employers with tax advantages and employer matching, while stocks offer potential for higher returns but also higher risk. It's generally recommended to have a diversified portfolio that includes both 401k and stocks to balance risk and return.


Which changes would result in a decrease in the gravitational force between two objects?

Decreasing the mass of one or both objects or increasing the distance between them would result in a decrease in the gravitational force between them.


Is to decrease noun?

Yes, the word 'decrease' is both a verb (decrease, decreases, decreasing, decreased) and a noun (decrease, decreases).The term 'to decrease' indicates that the word is functioning as a verb.Examples:Business began to decrease as soon as they dug up our street. (verb)The decrease in business is due to the street construction. (noun)


What kind of investment is portfolio managers who do lots of research manage this pool?

Portfolio managers who do in-depth research and analysis usually manage actively managed funds. These funds include stocks, bonds, or a combination of both, and the portfolio manager actively makes investment decisions to generate returns that outperform a benchmark. They aim to take advantage of market opportunities and maximize returns for investors through their research and investment expertise.


Which characteristic of the gas giants decrease with increasing distance from the sun?

Characteristic details given: A.) equatorial diameter B.) period of rotation C.) number of moons D.) both A and C Answer : D.) both A and C


What do most millionaires own real estate or stocks?

Most millionaires tend to invest in both real estate and stocks, but real estate often plays a more prominent role in their wealth accumulation. Real estate provides not only potential appreciation in value but also passive income through rental properties. Stocks, while also a significant investment, can be more volatile and require active management. Ultimately, a diversified portfolio that includes both asset types is common among millionaires to mitigate risk and enhance returns.


How are scoring rubrics related to portfolio?

Scoring rubrics have a relation to portfolio assessment because they are both evaluating the outputs of every learner.................................


What causes a decrease in gravitational attraction?

A decrease in gravitational attraction can be caused by increasing the distance between two objects or by reducing the mass of one or both objects. Gravitational attraction follows an inverse square law, which means it decreases rapidly as distance increases.


What is the main risk you face when you buy stocks as investments?

The main risk when buying stocks as investments is market volatility, which can lead to significant fluctuations in stock prices due to changing economic conditions, investor sentiment, or company performance. Additionally, there is the risk of losing your entire investment if a company underperforms or goes bankrupt. Diversifying your portfolio can help mitigate these risks, but it does not eliminate them entirely. Overall, investing in stocks requires careful consideration of both potential rewards and inherent risks.


Can a showcase portfolio be assessment portfolio as well?

Yes, a showcase portfolio can also serve as an assessment portfolio, as both types can demonstrate a person's skills and competencies. A showcase portfolio highlights an individual's best work, while an assessment portfolio typically includes a range of work to evaluate progress and proficiency. By carefully curating the showcased pieces to meet specific assessment criteria, one can effectively combine both purposes. However, it's essential to ensure that the portfolio aligns with the intended goals of assessment and displays a comprehensive view of abilities.


Where do I go for information on penny stocks?

Penny stocks can be found at thehotpennystocks.com. It is also wise to go to allpennystocks.com as that site provides all the penny stocks for both the United States and Canada.


How do you calculate yield on your financial portfolio?

To calculate the yield on your financial portfolio, divide the income generated by the portfolio (such as dividends, interest, and rental income) by the total value of the portfolio. The formula is: Yield = (Income / Portfolio Value) x 100%. This gives you the yield as a percentage, reflecting the income return relative to the overall investment. Regularly updating both income and portfolio value is essential for accurate yield assessment.