Hold Now, Buy or Sell Later Calculator - Coping With Falling Stock Prices
When a stock that you own moves to the price downside, you can hold it and ride out the price drop. Or, if the stock drops to a specified level that you consider to be an attractive, you can buy more shares and hold them. Or you can sell your shares if the stock falls to a specified price. Which strategy is best in terms of making money depends on how low the stock goes and how much it recovers in the future. And you must consider transaction costs such as commissions and taxes on gains.
The Hold Now, Buy or Sell Later Calculator assumes that you own a given number of shares at the beginning of the analysis. You'll need to specify the price at which and number of years from now that you'll buy additional shares or sell all initial shares. And you'll need to specify the price and number of years from now that the value of each of the following three investment strategies will be computed.
- Hold all shares now and buy or sell no more shares later - hold initial shares and collect dividends if stock pays them.
- Hold all shares now and buy more shares later- hold initial shares and collect dividends if stock pays them and then buy a specified number of shares at a specified price and collect dividends if stock pays them.
- Hold all shares now and sell all shares later - hold initial shares and then sell all shares at a specified price. Collect interest on cash proceeds from sale until the valuation date. Collect dividends if stock pays them until you sell all shares.
To get a quick feel for the calculator, click on the Calculate Returns button using the default input values. In a few seconds the results will be displayed on a new page. After looking at the results, you'll be ready to enter your own input.