Selling Stock Strategies and Market Indicators Quiz
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Questions and Answers

When should you consider selling stocks according to the text?

  • When the stock is overvalued or when you want to hold stocks for life
  • When the market is valuing the company strangely or when the bull market ends
  • When you think the bull market is ending or when valuations become extreme (correct)
  • When you think the bear market is starting or when the stock is overvalued
  • What is mentioned as a reason to sell stocks when valuations become extreme?

  • It's a good time to buy more stocks
  • The market is valuing the company strangely
  • The stock is overvalued
  • The stocks can top out well before the bull market ends (correct)
  • What is a sign that a bull market is getting over according to the text?

  • Stocks start declining by 50-90% (correct)
  • Good stocks are down by 50% and bad stocks are down by 95%
  • Stocks start increasing rapidly
  • Valuations become extreme
  • Why does the text advise holding only certain stocks during a bear market?

    <p>Because good stocks will be down by 50% and bad stocks will be down by 95%</p> Signup and view all the answers

    What example is given to illustrate the importance of timing the last leg of the bull market?

    <p>Infosys went up to 14k from 10k in 3 days after going up 100x</p> Signup and view all the answers

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