Taking share profits

merlin1964

Hi, I am new here, a couple of my friends have started dabbling in shares, they are doing quite well.
Both decided to take the profit from some of their shares, they had £400 profit and took it.
What is confusing them is they are still in profit by £300

Please can someone explain

Thank you in anticipation:question:

turbobob

By taking profits you mean they sold all of the shares, or they sold £400 worth? I don't really understand the question.

Loughton_Monkey

turbobob wrote: »

By taking profits you mean they sold all of the shares, or they sold £400 worth? I don't really understand the question.

Nor do the people who posed it. If they did, surely they could work out the answer.

Aegis

Presumably they sold a quarter of their holding, resulting in the remaining holding showing a profit of 75% of the original.

Remember, you don't sell the profit, you sell the shares. Any profit those shares have made is then crystallised. In this case £100 of profit was locked in on the batch of shares sold, while £300 of profit now remains subject to market fluctuation.