______________James has just purchased a stock for $50 a share,and in the first two days it rises to $60 a share.James decides that this 20% gain in 48 hours is a nice little windfall,and sells the stocks at that price.The fact that it next goes up to $80 a share in the following month leaves James wondering why he sold.This tendency to sell a stock too quickly after its value has increased is called the______________effect.

Question

Quizplus · Accepted Answer

The disposition effect refers to the tendency of investors to sell assets that have increased in value while keeping assets that have dropped in value.

______________James Has Just Purchased a Stock for $50 a Share,and