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

What is the main difference between investing and trading?

  • Investors aim to profit from daily market fluctuations, while traders focus on long-term wealth accumulation.
  • Investors maximize returns daily, while traders hold their assets for years or decades.
  • Investors ride out short-term losses, while traders attempt to make quick profits from fluctuating markets.
  • Investors seek larger returns over an extended period, while traders take advantage of short-term market movements. (correct)

    • What types of assets can be included in an investment portfolio?

  • Bonds, cryptocurrencies, ETFs, and derivatives
  • Stocks, mutual funds, commodities, and real estate
  • Baskets of stocks, mutual funds, bonds, and ETFs (correct)
  • Savings accounts, stocks, options, and gold

    • Which strategy aims to maximize returns daily, monthly, or quarterly?

  • Saving
  • Speculating
  • Trading (correct)
  • Investing

    • What is the primary goal of investing?

    <p>To gradually build wealth over an extended period of time</p> Signup and view all the answers

    What do traders do in response to fluctuating markets?

    <p>Attempt to make transactions that help them profit quickly</p> Signup and view all the answers

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