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Perception and value of a stock

Posted By On 3/25/2008 11:48:00 PM
One must identify a stock which should be a blue chip stock and can thus make investment in it. However if the stock falls by 50% than one need not worry as one knows the real value of the stock is much more than it is being projected in the present fall in the price of the stock and the present value of the stock is the perceived value of the stock which is presently less than the original value of the stock and thus one can buy this stock more as an averaging technique, however one has to be sure about the growth prospects of the stock.

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