ECONOMICS

COST ACCOUNTING

INVENTORY AND PRODUCTION MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Buy low, sell high
A
True
B
False
Explanation: 

Detailed explanation-1: -Buying low and selling high is generally a good strategy as it allows you to take advantage of price movements in the market. However, there is no guarantee that this strategy will always be successful, and you may end up losing money if the market conditions are not favorable.

Detailed explanation-2: -The buy low, sell high trading strategy encourages buying stocks or other securities at a lower cost than you may subsequently resell them for. The buy high, sell low strategy (which essentially encourages investors to sell their stocks at a loss) is the opposite of this.

Detailed explanation-3: -Ask any smart investor and they will tell you that the secret to making money in the market is to buy low and sell high.

Detailed explanation-4: -So, buying low and selling high is a very difficult thing to do in real life. This strategy primarily relies on share prices, and the thing is, those prices fluctuate on a regular basis and unless you have a crystal ball, it’s impossible to know where they’ll be heading next. Share prices can depend on many factors.

There is 1 question to complete.