In the Context of the Various Strategies for Investing in Securities

question 136

Multiple Choice

In the context of the various strategies for investing in securities, which of the following statements is true of market timers?

• A) They try to make quick gains by buying low and selling high over a relatively short time horizon.
• B) They receive very low returns because they invest in low-risk securities.
• C) They avoid taking risks by purchasing securities and holding them for a long period of time.
• D) They perform intensive research and try to find stocks that are undervalued in the market.

---

Definitions:

Subject of Agency

The entity or matter that is represented or acted upon by an agent, within the context of a legal or business relationship.

Commissions

Payments made to agents or employees based on the value of sales or services they have directly facilitated or sold.

Sales Agent

An individual or entity tasked with selling products or services on behalf of another company, typically earning a commission for transactions.

Accounting

The systematic process of recording, measuring, and communicating financial information about economic entities.