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By Laurel Tincher
of Mediafeed Cashing Out Your Stocks
Buying stocks can be a fairly straightforward undertaking, whether done online or through a financial advisor. But when it’s time to sell shares, some beginning investors struggle with how to turn their stocks back into cash. After all, money invested in stocks is not, immediately, cash.
Liquid assets, like stocks, can still be converted into cash in a short amount of time. Because they’re typically faster to liquidate than investment items like real estate or jewelry, stocks are sometimes referred to as “cash equivalents.” Until an investor sells a stock, however, the money stays tied up in the market.
Investors may want to sell stocks for a wide variety of reasons. They might wish to reinvest the cash into another asset with an eye towards long-term gains. Or, alternately, they could choose to withdraw funds from the stock market to cover short-term, daily expenses with cash earned from the sale.
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So, how might investors go about cashing out stocks? And what factors might individuals curious about how to cash out stocks bear in mind? Here’s an overview of the how and when of selling stocks.
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