Difference between revisions of "Buy-and-hold"

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"Buy-and-hold" is a long-term, passive investment strategy in which an investor buys stocks and holds them for a long period of time, regardless of fluctuations in the market. Buy-and-hold investors may actively choose the stocks they invest in, but they do not pay attention to short term price movements and technical indicators.  
"Buy-and-hold" is a long-term, passive investment strategy in which an investor buys stocks and holds them for a long period of time, regardless of fluctuations in the market. Buy-and-hold investors may actively choose the stocks they invest in, but they do not pay attention to short term price movements and technical indicators.  


One benefit of a buy-and-hold strategy is that long-term investments tend to be taxed at a lower rate than short-term investments.  
One benefit of a buy-and-hold strategy is that long-term investments tend to be taxed at a lower rate than short-term investments.<ref>{{cite web|url=http://www.investopedia.com/terms/b/buyandhold.asp|name=Buy And Hold|org=Investopedia.com|date=December 9, 2009}}</ref>





Revision as of 20:53, 9 December 2009


"Buy-and-hold" is a long-term, passive investment strategy in which an investor buys stocks and holds them for a long period of time, regardless of fluctuations in the market. Buy-and-hold investors may actively choose the stocks they invest in, but they do not pay attention to short term price movements and technical indicators.

One benefit of a buy-and-hold strategy is that long-term investments tend to be taxed at a lower rate than short-term investments.[1]


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References[edit]

  1. Buy And Hold. Investopedia.com.