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.

Question

Quizplus · Accepted Answer

A "buy and hold strategy" reduces the number of transactions, which in turn lowers brokerage commissions. This can lead to higher net profits over time. Choices B and C are incorrect because they assume outcomes that cannot be guaranteed in the stock market.

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