RE: Doncaster Community College11 Mar 2025 19:34
EKimp have you ever heard of risk management? Surely this is not a serious question?
Let's just consider this in a real world situation and consider it was your play / investment gamble.....
You borrow a stock at £1.50 and you sell it into the market, at this point you have no realised profit but a debt of 1 share.
That share now falls to 25p and you have the opportunity to buy back that share for 25p and cash in your £1.25 profit and you can then call it a profit, it is not paper it is realised and it is in your bank, noone can take it from you.... With me so far? Sounds quite attractive yes?
Now someone comes along and offers you the option to "not sell" at that price you have to work out the risk / opportunity cost of retaining that investment....
Now taking all our different opinions aside, that stock which you just sold does have a value, as it holds more cash than it is actually valued at so let's not even go with a "zero value" scenario.
So are you now going to risk your £1.25 profit that you can have today, in order to make a measly couple more pence, even if it falls by half you are going to only add 10% to your profits compared to what you have if you get out now.
So you are asking me why they should sell, they have a guarantee of £1.25 ( for example) per share, and the best they could get would be £1.35 a share but there is no guarantee and the second this moves it will move quickly.
No gambler in the world would take that bet, and that your honour is exactly why they should sell right now, you know it, they know it and we know it.
All of this nonsense is making it worse for you, and just making it more and more obvious you are just making the pain for yourselves worse.