Homework help please

Economics
Tutor: None Selected Time limit: 1 Day

"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

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