Vinita buys a stock assuming that she can make profit out of it. Shortly thereafter, the stock value drops and she loses money. Her financial planner thinks the stock value will drop further and advises her to sell the stock. However, the market value has dropped so much already that Vinita believes it is due to rebound; she doesn't want to sell at the lowest point and lose money. She holds onto the stock, hoping to regain her loss. Instead, she loses more money. This phenomenon is referred to as .
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Vinita buys a stock assuming that she can make profit out of it. Shortly thereafter, the stock value...
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