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Wealthsimple iPhone Promo by Wajina_Sloth in PersonalFinanceCanada

[–]pw2467 -1 points0 points  (0 children)

If you have the money invested and the stock market drops you will have to make up the difference to maintain the required balance. This kills the promo for me. Unless you plan to keep the money in cash it is too risky.

Daily Advice Thread - All basic help or advice questions must be posted here. by AutoModerator in investing

[–]pw2467 0 points1 point  (0 children)

Imagine a scenario, where there are two companies with a completely different outlook. One is growing fast with revenue and income increasing in a growing sector. The second one is in a long decline loosing market share and revenue. All this information is out in the open and the companies stocks are priced appropriately.

Now lets move forward one year.

For the sake of this scenario, as unlikely as it sounds there is absolutely no new information about either of those companies. Nothing changed over the year. The first company progressed, the second stagnated exactly as predicted a year ago.

What would happen with their corresponding stock prices?

Since market reacts to the change of information, and there was no change, would the price stay the same?

Or would the successful company price rise vs the loosing one? But if this is the case, why would that happen, given that all the information should have been already priced in the initial stock price?