Brenda Purchases Stock and Never Plans to Sell Them

question 45

Multiple Choice

Brenda purchases stock and never plans to sell them.She could be considered to be using a

• A) Buy-and-hold technique.
• B) Direct investment plan.
• C) Direct reinvestment plan.
• D) Dollar cost averaging technique.
• E) Margin technique.

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Definitions:

Financing Activities

Transactions related to raising capital and repaying investors, including issuing debt, repurchasing shares, and paying dividends.

Acquisition of Land

The process of obtaining ownership or rights to use land through purchase, lease, or other means, often for business or investment purposes.

Common Stock

Common stock represents ownership shares in a corporation, offering voting rights and potential dividends to shareholders.

Noncash Transaction

A transaction that does not involve the direct exchange of cash for goods or services, often involving bartering or trading.