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When buying and selling stocks, investors make decisions based on a variety of factors, including the company's performance, economic conditions, and the current price of the shares. Here are some things to know about buying and selling stocks:
Buying and selling process
When buying stocks, investors bid to get the best price available. When selling stocks, investors ask for the best price they're willing to accept. A transaction occurs when the bid matches the ask.
Stock market
The stock market is made up of one or more stock exchanges, such as the New York Stock Exchange (NYSE) and Nasdaq.
Rebalancing
Investors may rebalance their portfolios over time to ensure they align with their goals and risk tolerance.
Analyst ratings
Analysts may rate stocks as "underperform" or "outperform" to indicate whether they expect the stock to do better or worse than the overall market. 5 ⭐
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