A Long-Term Investment Strategy Where Investors Purchase Securities with the Intent

question 71

Multiple Choice

A long-term investment strategy where investors purchase securities with the intent to keep them for a long period before liquidation is called

• A) Speculation.
• B) Shorting the stock.
• C) Buy-and-hold.
• D) Margin trading.
• E) Option trading.

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Definitions:

Profit Margin Ratio

A financial metric that measures the percentage of profit a company produces from its total revenue.

Dividend Payout Ratio

A financial metric that measures the percentage of earnings paid to shareholders in dividends.

Profit Margin

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency of a company in managing its costs and profit generation.

Retained Earnings

Retained earnings are the portion of a company's profits that are kept or retained within the company rather than paid out to shareholders as dividends, often used for reinvestment in the business or to pay down debt.