Shares selling by Investment funds

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Shares selling by Investment funds

Investment funds will sell some of their shares if they conclude that they have made a good profit and want to reduce their risk or just cash the profit. They will also sell shares that became unattractive as the profits of the corporation may decline and its prospects may deteriorate.

This selling will be automatic but the president may decide to restructure his investment fund and make manual transactions. Selling is limited to 1% to 2% of the shares of a corporation and more selling is possible when the offered shares have been (partially) sold.

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