What is an insurance write-off? How does an insurer decide if a car is a write-off? What are the insurance write-off categories? Category A. Category B. Category C. Category D. Write-off values are relative. What if I don't agree with the decision to write-off my car? If my car is a write-off, can I buy it back? What if the write-off valuation won't cover my car finance?
Changes in the implicit value of a stock can cause it to drop dramatically in price because it is intangible. Basically, it is investors' perceived value of the stock. If investors perceive a company to be in financial trouble, whether it is or not, it decreases the implicit value of the stock.
A Word of Caution. While short selling a stock is an effective way to make money from declining prices, you have to realize that there is no cap on the losses you can incur should the stock price go the other way. The most a stock price can drop to is $0, but the most it can rise to is limitless.ou have anticipated this and positioned yourself to profit â through shorting the declining stock. By short selling, you would sell the stock now at the current market price, and when the stock price declines in the future, you would buy back (also known as cover), the shares at the lower price.