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Briefly Explain Why It Is Considered to Be Extremely Difficult

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Essay

Briefly explain why it is considered to be extremely difficult for financial professionals to choose only stocks for their client's investment portfolios whose price will rise in the future.


Definitions:

Equity

The worth of a stake in property ownership, such as the equity held by shareholders in a company.

Dealer Market

A financial market where dealers buy and sell securities for their own accounts, acting as principals in the transaction.

Securities

Financial instruments that represent either ownership (stocks), a debt agreement (bonds), or rights to ownership (derivatives) that can be bought and sold.

Primary Market

The financial market where new securities are issued and sold for the first time, typically through public offerings or private placements.

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