Why do stocks go down when earnings are up?
919881
The stock price has more to do with expectations than the actual earnings number.  \n\nIf the company beats earnings expectations but misses on revenue of some other metric, the stock price will often suffer.  If the stock price has run up prior to earnings, the earnings report will often trigger selling (and a drop in price) no matter what the news.  \nIf the company makes optimistic statements about coming quarters or raises guidance, the stock price will often go up even if the earnings disappoint.
93639
I don't invest in stocks.\n\nI TRADE them.\n\nAnd yes, I buy and sell shares. As a professional trader you can make money when the stocks go UP and DOWN. Yes you can make money when stocks fall in price! Trading stocks has allowed to make a living off trading stocks...\n\nGood Luck!
702087
Wow, what a variety of answers.\n\nHere's the scoop.  Yes, some companies do it to manipulate their stock price a little, but the main reason to buy back shares is if a company cannot find alternative areas in which to invest their capital that will earn a higher rate of return.  Then they'll buy back their shares instead.\n\nWhat they're saying is, the best use of their money is to buy back their own stock, to invest in themselves.  Typically, this signals to the market that the company is believing in themselves.  \n\nConcurrently, the earnings will now be divided by fewer outstanding shares, thus raising the value of each share.\n\nHope that helps!
634279
The stock has done extremely well but it is not clear why. It is way overvalued by most measures and I would not hold it at this point. If you're concerned about selling too low, then you might set a stop-loss, which means if it keeps going up, the value of your stock will keep going up, but if when it drops significantly from the top your shares will sell.\n\nBest of success.
354033
This is kind of like asking how the government works. Its a little too broad a question. But basically when you buy stock, you buy a "small piece of the company" that can either go up or down in price for whatever reason. The stock markets are where these orders get traded. Its difficult to learn a lot about it because the more you know the less you need help from financial professionals. Just remember there are a lot of smart people with big money in the market and they want to get all the profit and stick the smaller fish with the losses. Wall Street Journal put out a book that shows you how to read the WSJ newspaper. Its a good way to learn about the market and the overall economy.I learned about the market from AM financial radio shows. Although they are always selling you something, if you listen close you can get alot of free advice. Between that and actually getting into the market I learned a ton. Just remember its all a risk and if you can't lose than don't play. Good Luck !
608625
Law of averages at work. What moves Up has to Come down.\n\nIf only our investors knew this simple truth !!
875181
Buying stock does not effect taxes at all.  Selling stock creates a capital gain or loss that is taxed/deductible.  If the stocks pay dividends, they are taxable income.  If the stocks are held in an IRA, 401(k), or other tax deferred plan, taxes are only paid when you take the money out of the plan.
1143005
This is a common mistake that most people make. I still try to figure this out… why do people buy when the market is high and sell when the market is low? It’s like going to a supermarket and asking them to charge you more for milk that’s on sale. \n\nHere’s some advice…\n\nInvest most of your money in mutual funds.  The reason… because they’re managed by people that know what they’re doing.  It’s ok to play individual stocks too, just don’t sink all you money into them.  You can also get away from commission fees by setting up an auto-investment plan with the online service that you’re using.  Doing some analysis won’t help you pick good companies, knowing the management will, however you and I don’t have that luxury.  So… what do we do?  Well, let’s start with the tangibles.  What products do they sell?  If that product would disappear could we live with out it or would it seriously hurt the way we live (i.e. toilet paper)?  How popular is this/these products and how easy is it to enter this particular market.  What competitors do they have?  What are they doing different?  Let’s take a look at the financials, how much debt is this company carrying? **** that’s the most important question.  Good companies become great by carrying little debt.  Look up book value ratio. This measures a company's stock price compared to it's book price.  \n\nEX.\n\nIf a company XYZ’s stock price is selling at $5 a share and the book value (liquidating the company) is $10, then just by buying this stock you’ve already made a $5 profit.   Hope this helps.\n\nAlso… hold your investments.  \n\nInvestments are supposed to be held for long periods of time. When I say long periods, I mean 10, 15, 20, 30 years. The key is that companies will make money, that’s what they’re in business for. Inflation, for a short-term, could affect this, however most companies will pass this off to consumers or find ways to cut back on costs. Do you see my logic…AS LONG AS COMPANIES ARE IN BUSINESS TO MAKE MONEY, you have nothing to worry about.
860871
Mainly an accounting function.  Kind of like getting two tens for a twenty.  With some high priced stocks, it can help generate trading on the floor because the bid and ask price can be too far apart.\n\nSome believe that stock splits indicate a company is prospering but there are plenty of cases when that doesn't hold water.
946470
Fewer shares, yes and at a higher price.  Net short dollar position stays the same.  Stock prices may rise just because of the higher stock price alone (due to marketing the stock to a broader audience).  But don't be surprised by continued weakness in the stock.  After all, it is a reverse split.  Management is critical for a company's success or failure.
29870
Best way to check to see if they are undervalued is look at the Price to Book ratio.  This DOES NOT  GUARANTEE the stock's price will go up.
764508
Depends on your investments. Stocks or bonds? Fixed or variable rates/returns? Example, if you're investing in a fixed rate @ 3% and rates go up to 5%...you'll make less because your fixed rate is 3%. If rates go down to 2%, you'll make more.
656821
Only when sold at a profit.  If you sell at a loss you don't owe any tax on the transaction, and it might reduce your overall taxable income.  It's exponentially more complicated than that because gains and losses are treated differently based on holding period, the different kinds of gains and losses offset each other, some overall losses can reduce taxable income, and if you have too much loss you carry it forward into future years.  Congress ensured millions of dollars will go to tax accountants with that one provision, which is actually a comparatively simple slice of the monstrous tax code.
654497
Generally, if there is negative equity, reports will give N/A (not applicable).  The same goes for PE ratios when earnings are negataive.
637669
Splits make stocks more affordable to small investors but generally don't mean anything. It's like breaking a pencil into 2, you now have 2 pencils but you didn't add any value. You can find out which companies are going to split at Yahoo Finance at http://biz.yahoo.com/c/06/s5.html
27079
An unrealized loss occurs when a stock decreases after an investor buys it, but he or she has yet to sell it. If a large loss remains unrealized, the investor is probably hoping the stock's fortunes will turn around and the stock's worth will increase past the price at which it was purchased. If the stock rose back above the original price, then the investor would have an unrealized gain for the time he or she still holds onto the stock.\n\nFor example, say you buy shares in TSJ Sports Conglomerate at $10 per share, and then shortly afterwards the stock's price plummets to $3 per share, but you do not sell. At this point, you have an unrealized loss on this stock of $7 per share. Let's say the company's fortunes then shift and the share price soars to $18. Since you have still not sold the stock, you'd now have an unrealized gain of $8 per share.\n\nGains or losses are said to be "realized" when a stock is sold. This is especially important from a tax perspective as, in general, capital gains are taxed only when they are realized. Unrealized gains and losses are also commonly known as "paper" profits or losses, which implies that the gain/loss is only real "on paper." This may be true from a tax perspective, but remember that a loss is a loss, whether it's been realized or not.
192046
By buying back its shares in the market and then cancelling them. Often done in UK and US as it then increases earnings per share