ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -While lowly priced stocks can drop some more, it is better to invest in them rather than stocks with high prices which might not rise further than the time of purchase. The latter can experience a price drop which would lead to a loss for those looking to sell said shares.

Detailed explanation-2: -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-3: -The “Buy Low & Sell High” investment strategy is all about timing the market. You buy stocks when they’ve hit a bottom price, and you sell stocks when their price peaks. That’s how you can generate the highest returns.

Detailed explanation-4: -Key Takeaways Buy low, sell high is a strategy where you buy stocks or securities at a low price and sell them at a higher price. This strategy can be difficult as prices reflect emotions and psychology and are difficult to predict.

Detailed explanation-5: -arbitraging; arbitraged. “Buy low, sell high” is the mantra of the stock market. Perhaps the most extreme example of this is arbitrage, the act of buying and selling goods simultaneously in different markets to gain an immediate profit. Impressive, but tricky.