Finance · Profit-taking
What does the term 'profit-taking' signify in the stock market?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Reinvesting cash dividends to buy additional shares of the same stock.
- 2Selling securities that have appreciated in value to realize capital gains.✓
- 3Short selling a stock expecting its price to decline further.
- 4Purchasing shares of a company immediately after a steep price drop.
Correct answer
Selling securities that have appreciated in value to realize capital gains.
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