If the price of stock falls dramatically but an investor thinks it will go up again, what is the investor likely to do?

Question

A.
trade shares

B.
sell shares

C.
buy shares

D.
do nothing

Answer 1

C. Buy shares. When the price of a stock falls dramatically, it presents an opportunity for the investor to buy more shares at a lower price. If the investor is optimistic that the stock will eventually rise again, they may choose to take advantage of the lower price and buy more shares while they are available.