Thursday, March 21, 2013

Stock Market Exchange: Oracle drops the ball

    Oracle's stocks dropped 8% after missing their 3rd quarter goals.  This is another great example for the opposite of the spectrum - how you can lose money.  According to sources the quarter failed because of the bad sales executions, and for a software company this means trouble.  Say you invested some money in Oracle, let's go with one million dollars just for example.  An 8% loss for your one million dollars in stock means you lost (1,000,000*0.08) is eighty grand.  That is a pretty big loss, but there are companies that go completely under and your stocks become worthless.  That is a one million dollar loss.  This is just how the game of stocks works - lose big, win big.  Of course we aren't dealing with millions of dollars, but you still don't want to lose money.  For Oracle this is a tough blow, because they have been ranked down on many sites placing around 3rd, or even 4th best software company.  Each stock also lost around $3, which is another tough blow for investors.  For their sake I hope they recover.

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