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Why does a stock price suddenly drop for no reason? There is no bad news coming out, the S and P 500 is going up. My stock dropped by 4% today. Should I be concerned there is some bad news that I don't know coming out soon?

Edit: The company is Chemours Company ticker code:CC. https://finance.yahoo.com/quote/CC?p=CC Thanks for your help!

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  • It happens. At one company I was at, for two or three consecutive earning calls we blew away expectations on revenue and the stock price still dropped 15%.
    – Kevin
    Jun 26 '18 at 17:17
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    If you gave us the stock, we might be able to offer better answers. Sometimes it's news about the stock's industry rather than a specific stock, for example.
    – ceejayoz
    Jun 26 '18 at 18:14
  • Anyone with a large amount of shares who decides to dump them can send the price down. Possibly only temporary, but it also can scare others into selling.
    – runrig
    Jun 26 '18 at 21:44
  • Has the stock moved up quite a bit over the last couple of weeks, it could be just some profit taking after a good run up.
    – Victor
    Jun 27 '18 at 0:02
  • There's no way to know about bad news that is coming out soon. The future is unknown. I didn't see any relevant news. I didn't see anything related to the sector either. A 4% drop isn't an inordinately large drop, especially since it wasn't on large volume so it may just have been profit taking. Jun 27 '18 at 18:15
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There's no way to know for sure - maybe someone sold a bunch of shares for liquidity reasons? Maybe an analyst report with a recommendation was released? Maybe a fund is rebalancing and there isn't enough buy support to keep the price from dropping? Maybe the sector overall is down despite the S&P being up? Maybe some good news was expected but hasn't come?

Should I be concerned there is some bad news that I don't know coming out soon?

What do you think the stock is worth? Do you think there's still long-term upside?

Investors that panic sell when a stock drops unexpectedly generally don't do well (they buy high and sell low). If you can't handle single-stock volatility then do not invest in single stocks.

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A stock can drop for a number of reasons, some real, some artificial.

A low priced stock with a wide B/A spread can drop several pct if the last two trades were at the ask and then at the bid. The same applies to high dividend stocks as well as those that issue large irregular as well as special dividends. Sometimes a secondary offering can drop price.

And then there's just the old fashioned more selling than buying. Sometimes it takes access to a better news source (Dow Jones, Bloomberg, Reuters, etc.) than basic web sites like Yahoo Finance or MarketWatch in order to ferret out all of the news.

If you provide the symbol, perhaps those here might be able to find a clue.

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