"Pyramiding" involves the frequent sale and purchase of securities for the sole purpose of generating a commission.

Name: "Pyramiding" involves the frequent sale and purchase of securities for the sole purpose of generating a commission.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

"Pyramiding" refers to the practice of using unrealized profits from successful trades to increase the size of a position in the same or a related asset, not the frequent buying and selling of securities solely to generate commissions, which is known as churning.

"Pyramiding" Involves the Frequent Sale and Purchase of Securities for the Sole