Question

"Buy and hold" involves buying stocks and holding them: A. for the long run. B. for...

"Buy and hold" involves buying stocks and holding them:

A.

for the long run.

B.

for a time proportional to the real interest rate.

C.

until the price increases even just a little.

D.

until a cheaper stock comes along.

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Answer #1

Answer: A. for the long run.

"Buy and hold" involves buying stocks and holding them for the long run.

The term "Buy and hold" is associated in stock market, that means buy stocks and hold them for long-run regardless of the short-run fluctuations of stock price. Investors in stock market, who look for healthy return from investing in stocks, do believe in "buy and hold" strategy.

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