Investigate Rapid Price Moves

If a stock's price shoots up or down, something's going on. Maybe the company has reported better-than-expected financial numbers and its stock price has risen on the news. Or maybe the stock's price is sinking like a stone after the company announced operational problems or the loss of a key customer. In either case, it's important to be aware of any such price swings in the stocks you own.

Rapid price moves aren't necessarily anything to panic about. However, you should understand why the stock's price moved the way it did, then decide what to do in the context of your investment approach and time horizon. You may want to sit tight. Again, if the stock still meets your investment criteria, why sell?

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