A buy-and-hold strategy implies that you
A)do not try to increase return by frequent trading.
B)do not sell stocks for tax reasons.
C)believe in exploiting economic cycles.
D)are an unsophisticated investor who needs professional help.

Question

Quizplus · Accepted Answer

A buy-and-hold strategy involves investing in stocks for the long-term, with the belief that the market will generally rise over time. This strategy involves resisting the temptation to buy and sell frequently (which can increase transaction costs and potentially harm returns), and instead holding onto investments through market ups and downs. It is not necessarily an indication of being unsophisticated or needing professional help, as it can be a deliberate and informed investment approach.

A Buy-And-Hold Strategy Implies That You