Investing Vs. Trading in International Business and Trade
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Questions and Answers

Investors generally seek larger returns over an extended period through buying and holding. True or false?

True

Traders take advantage of both rising and falling markets to enter and exit positions over a shorter time frame. True or false?

True

Investments are often held for a period of years or even decades, taking advantage of perks like interest, dividends, and stock splits along the way. True or false?

True

The goal of trading is to gradually build wealth over an extended period of time. True or false?

<p>False</p> Signup and view all the answers

Traders will attempt to make transactions that can help them profit quickly from fluctuating markets. True or false?

<p>True</p> Signup and view all the answers

Investors are more likely to ride out short-term losses, while traders will attempt to make transactions that can help them profit quickly from fluctuating markets. True or false?

<p>True</p> Signup and view all the answers

Investors who take an active investing approach usually tend to monitor the markets on a regular basis and make changes accordingly.

<p>True</p> Signup and view all the answers

Passive investors follow a buy-and-hold strategy and make an effort to closely monitor the markets on a daily basis.

<p>False</p> Signup and view all the answers

Investors generally follow a short-term investment time horizon to achieve their goals.

<p>False</p> Signup and view all the answers

Trading involves more frequent transactions, such as the buying and selling of stocks, commodities, currency pairs, or other instruments.

<p>True</p> Signup and view all the answers

Buy-and-hold investors wait out less profitable positions, while traders seek to make profits within a specified period of time.

<p>True</p> Signup and view all the answers

Trading profits can only be made by buying at a lower price and selling at a higher price.

<p>False</p> Signup and view all the answers

Traders often employ technical analysis tools, such as moving averages and stochastic oscillators, to find low-probability trading setups.

<p>False</p> Signup and view all the answers

A trader's style refers to the timeframe or holding period in which stocks, commodities, or other trading instruments are bought and sold.

<p>True</p> Signup and view all the answers

Active investors generally seek out particular investments that try to underperform the returns of a specific benchmark index.

<p>False</p> Signup and view all the answers

Passive investors seek to track the returns of the benchmark index by frequently making changes in their investment portfolio.

<p>False</p> Signup and view all the answers

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