Homework help please

label Economics
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

"hot stocks" what are the risks involved? Please don't just give me a long paragraph, I need bullet points or an explanation
Apr 17th, 2015

According to recent studies of the stock market, the following risks are seen with hot stocks:

- Initial popularity of a stock can drive up the price, but long-term performance of such stocks is often less than anticipated by investors, resulting in a loss.

- One study shows that hot stocks tended to have a growth rate of little more than half that of less popular stocks.

- Investors who concentrate solely upon hot stocks incur a much higher risk of loss than those who choose to diversify.

- The price of hot stocks often tends to fall as rapidly as it rises, leading to losses for investors.


I hope this is helpful.

Apr 19th, 2015

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
Apr 17th, 2015
...
Apr 17th, 2015
Oct 23rd, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer