The _______ Is the Tendency for People to Sell Stocks

question 102

Multiple Choice

The _______ is the tendency for people to sell stocks that have risen too early and hold stocks that have declined for too long.

• A) endowment effect.
• B) disposition effect.
• C) escalation effect.
• D) sunk cost principle.

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Definitions:

Dependents

Individuals, typically family members, who rely on another person, usually the primary earner, for financial support.

Taxable Income

The portion of income upon which tax is owed, calculated by subtracting allowable deductions from gross income.

Married Taxpayers

Individuals who are married and may choose to file joint or separate income tax returns.

Filing Jointly

A tax filing status that allows married couples to file their taxes together, combining their income and deductions, potentially leading to lower tax liability.