What is profit?
Profit is the process of extraction of the income gained for the investment, often by selling an investment after obtaining a desired amount of money beyond the original purchase price. The investor may decide to sell all or part of the investment to get involved. The profit acceptance strategy will vary depending on the nature of the investment, the amount of the revenue that is obtained and the investor's personal financial objectives.
When evaluating the investment with regard to profit investors usually take into account several factors. One has to do with the expected future performance of shares. If the investor is sure that the value of the shares reaches the peak, there is a great chance that it will ensure measures to sell shares as close as possible to the peak period. This helps maximize the amount of profits from the company and at the same time creates a profit that can be transferred to other merits that show the promise that they will start to appreciate value.
Receiving Strategy may be includedVat sale only part of accumulated shares. There are two possible reasons for this type of transaction. First, the investor may only require a certain amount of income to finance a new income or investment. Rather than selling all shares of the shares, part is maintained in the portfolio, allowing the remaining share to continue generating the return.
The second option, with the profit of shares of this type has to deal with the planned impact of the sale of all shares at once. If the investor believes that this step would create a market crisis that would cause further investment in the portfolio to depreciate value, there is a great chance of deciding to sell only part of the total investment. This step helps to protect the rest of the investment while providing the investor the cash necessary to monitor other investment stores.
Generally investors develop profit strategy based on their individual financial goals. For investors who tend to be conservative, can be strateGIE acceptance of profit rarely used because of the fact that most investment in the portfolio has a low level of volatility and is likely to produce a small but consistent profit in the long run. Adventure investors probably use profit more often, especially if the aim is to obtain high revenues from more risky investments. In this scenario, the aim is to gain as much return and sell an investment for profit before reversing shares and start losing value.