USA HISTORY

THE GREAT DEPRESSION 1929 1940

THE GREAT DEPRESSION

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
People can make money by buying stock at a low price and ____ it at a higher price.
A
selling
B
buying more
C
keeping it forever
D
None of the above
Explanation: 

Detailed explanation-1: -Swing Trading-in swing trading, you try to make gains in stock in a span of a few days or weeks. You buy a stock today at some price, and wait for its price to go up. After a few weeks or few months (going up to 6-8 months), you sell it when the prices are high.

Detailed explanation-2: -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.

Detailed explanation-3: -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-4: -Investors who believe a company will be able to increase its earnings in the long run or who believe a stock is undervalued may be willing to pay a higher price for the stock today, regardless of short-term developments.

There is 1 question to complete.