The Advantage of a "Buy and Hold Strategy" Is That

question 40

Multiple Choice

The advantage of a "buy and hold strategy" is that

• A) net profits will tend to be higher because there will be fewer brokerage commissions.
• B) losses will eventually be eliminated.
• C) the longer a stock is held, the higher its price will be.
• D) only B and C of the above are true.

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Definitions:

Fraud

Consciously tricking someone in order to gain illicitly or to rob a victim of their rightful due.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when entrusted with care of money, property, or confidential information.

Duress

Compulsion, force, or pressure exerted upon a person to coerce them into performing an act against their will or judgment.

Public Policy

Principals and standards considered to be in the interests of the public and used as a guide for lawmaking.