hi
i just had a big debate with an equity researcher about sunk cost - which is what you're talking about cutting loss on a stock.
you would cut a loss on a stock if you think it will not come back to breakeven - is that correct?
i am holding onto my org stock - as i believe it can go back to $5 one day.
i only understand the cutting of stock loss - if the stock is very bad and cannot come back i.e. msb
equity researcher was telling me to cut my loss on org - why - then i have a real loss (now its a paper loss).
Plus, i dont know where to invest the remaining fund to gain back my loss.
what is the theory on sunk cost (cutting loss on stock) - can anyone provide simple to understand explanation?
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