If a Person Follows a Buy-And-Hold Strategy, She Will Initially

question 268

Multiple Choice

If a person follows a buy-and-hold strategy, she will initially hold stocks:

• A) until the stock prices rise.
• B) until the stock prices fall.
• C) until the stock prices stabilize.
• D) whether or not stock prices rise or fall.

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Definitions:

Non-Controlling Interest (NCI)

A portion of the equity in a subsidiary not owned by the parent company, representing the minority shareholders' interest in the company's net assets.

Historical Cost Principle

An accounting principle stating that assets should be recorded and reported at their original purchase price.

Contingent Consideration

A future payment in a business acquisition that depends on specific outcomes or events occurring after the acquisition date.

Parent Company Method

An approach to preparing consolidated financial statements where the parent company's balances and transactions are presented as the primary entity.