Evaluate a number of factors before you decide it is time to sell some of your shares.

Instructions

1. Consider selling if the price has dropped substantially or remained stagnant for several months.

2. Think about selling if the price has risen to or beyond a target that you established when you bought the shares.

3. Note whether the company's fundamentals remain strong..

4. Evaluate earnings trends, management changes, revenue growth and other basics to determine whether fundamentals are sound. Even if the share price is sluggish or, for that matter, has hit new highs, you might want to hang on to the shares if fundamentals remain sound and growth prospects look good.

5. Visit your public library's business reference section and review reports by Standard & Poor. Do they project no price appreciation for the shares?

6. Consider changes in the competition. If an effective new player or several hot new players have entered the market, your share growth prospects could be in jeopardy.

7. Think about the company's product line. If the company depends on one product alone and has no plans of broadening its base, perhaps you should think about selling.

Tips & Warnings

• Consider the tax consequences of selling shares. If you have taxable capital gains, you might want to take some losses to reduce your taxes.