| |
The next issue to look at involves an executive or director within the business resigning. When someone resigns from a position, the business moves into a period of uncertainty. If anything, it might be a sign that something serious could happen to the stock. This is even worse if the person who resigns is not open about it. (Then again, there is always a chance that person who resigned might have something negative to say about the company’s prospects.) This in turn could cause the stock value to go down. Be aware of any financial reports that a business issues and you can be sure the news media would surely pick up on any story of someone resigning from a position.
What If That Person Retires?
A person who retires from a board is not going to cause the value of a stock to go down. Retirement is just a natural part of the business world. A stock should be safe when a person is retiring. However, watch the stock anyway. The odds of the stock plummeting in value following such an event are unlikely, but what the next leader does should at least be explored to give you an idea of what can happen with the stock as this new era in leadership begins. (The same can also be said after a prominent leader in the business is deceased.)
Then again, sometimes the person who retires is someone who holds an immense influence over the company. When Steve Jobs left Apple, there were concerns about how the company would continue to move forward. This caused Apple stock to take a slight hit. Apple eventually recovered as the group continued to remain innovative while focusing on unique developments well after Jobs’ departure and eventual death.
