Register now or log in to join your professional community.
A. People who are called "Day Traders" who buy and sell stocks for profit.
B. People who are called "Position Holders" who buy stocks for the long term and benefit from the dividends those stocks give every year.
C. Both A and B
D. None of them
i like balance between T+0 & Normal T+2
Basically there are two groups of people
risk takers and risk averse. Risk takers tend to buy volatile bonds and bills which has higher returns as well risks but risk averse tend to buy diverse portfolios to reduce their risk in the market.
answer should be C
Option C is the right answer.
There are two different business concepts: 1. The concept of Trading and 2. The concept of Investment. As a trader, you buy a certain product at a certain price and then you sell it for a higher price to make a profit. In the stock market, people who buy and sell shares seeking profit are called: "Traders" or "Day Traders". They don't buy long term. They buy and want to sell at the soonest time to make a profit from such transaction. If they buy and don't sell, they don't make money. If they buy and take a vacation for few days or weeks, they don't make money. They need to be actively involved in the process of buying and selling in order to make profit.
Investors, however, don't buy low and sell high to make profit. They buy the kind of assets which produce cashflow (or revenue) without having to sell them. They are not much concerned about the short term fluctuations in the market prices. In real estate those are called "real estate investors" who buy properties and hold them. They rent those properties out and make money from the rent that comes from those properties, regardless of the fluctuations in the prices of those properties. In the stock market, those investors buy certain kind of shares, the kind which produce annual dividends (revenue or cashflow), regardless of the market price of those shares. They don't buy to sell, but they rather buy to hold and make money from holding.
Since the concept of trading is different from the concept of investing, then I choose answer "B" which is: "Stock market investors" are "People who are called "Position Holders" who buy stocks for the long term and benefit from the dividends those stocks give every year."
C./Both A and B
The intended purpose of this document is to provide an instroduction to the fundamentals of buying und writing stock options.
You have been shown that exchange-traded options have many benefits including flexibility , leverage ,limited risk for buyers employing these strategies , and contract performance under the system created by Oci's Rules.
Options allow you to participate in price movement's without committing the large amount of funds needed to bury stock outrigh.Options can also be used to hedge a stock position , to acquire or sell stock at a purchase price more favorable than the current market price , or in the case of writing options , to earn premium income.
Whether you are a consevative or growth-term ,aggressive trader , your broker can help you select an apprppriate options strategy.
The strategies presented in this document do no cover all , or even a significant number , of the possible strategies utilizing options.
These are the most basic strategies ,however , and will serve well as building blocks for the more complex strategies available .
Despite their many benefits , options involve risk and are not suitable for everyone.An investor who desires to utilize options should have well-defixed investment objectives suited to his particular financial situation and a plan for achieving these objectives.
The succesful use of options require a willingnes to learn what they are , how they work , and what risk are associated with particular options strategies.
Armed with an understanding of the fundamentals , and with additional information and assistance that is readily availableis from many brockerage firms and other sources , individuals seeking new investment opportunitiesin today's markets will find options trading challenging , often fast moving , and potential rewarding ...
