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Profit-booking is nothing but encashing or realising the profit or gain in a share by selling it.

For example

In the market you buy a stock or share say

at Rs.150.

You are holding it for more than 2 months. Now its quoted at, lets say... Rs.320

The market has been bullish and you expect the trend to continue.

So you hold on to the stock. Another week goes.

The quote rises from Rs.320 to Rs.325.

No doubt the stock is .... still bullish or ... on the rise.

But dont yuou see that there is a slow down in the rise.

Yes this is the time to think seriously ....

and Sell the stock and take the profit

... this is called profit-booking, wheterh done by individuals or by big operators or by brokers.

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17y ago

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