Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
1,885,106,876 visitors served.
forum mailing list For webmasters
?
New: Language forums
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Buy-and-Hold

    0.12 sec.
Buy-and-Hold
An investment strategy in which one does not do any trading on a portfolio between the initial selection of the securities and the end of a certain time period, which is usually a long time. A buy-and-hold strategy ignores short- and medium-term trends and concentrates exclusively on the long-term. A buy-and-hold strategy also attempts to eliminate any emotional trading that may be done foolishly during a particular bear market. In general, a buy-and-hold strategy yields a solid return as the market trends upward with time. However, it can be exceptionally risky during a prolonged and severe bear market or recession. For example, if one used a buy-and-hold strategy starting in 1929 and held it throughout the Great Depression, one would have had to wait most of one's life before seeing a profit on the portfolio. See also: Active investing.

Buy-and-hold. Buy-and-hold investors take a long-term view of investing, generally keeping a bond from date of issue to date of maturity and holding onto shares of a stock through bull and bear markets.

Among the advantages of following a buy-and-hold strategy are increased opportunity for your assets to compound and reduced trading costs. Among the risks are continuing to hold investments that are no longer living up to reasonable expectations.



How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Email
Feedback
Add definition
? Mentioned in ? References in periodicals archive
 
Today, investors see the serious flaws in investment management based on the passive, buy-and-hold approach favored by traditional investment managers.
We had been in what was considered a buy-and-hold market.
Combine this with the demographic questions above, and you''ll have a decent baseline for whether or not to do a buy-and-hold or a buy-and-flip strategy.
 
Financial browser? ? Full browser
 
 
Financial Dictionary
?

Disclaimer | Privacy policy | Feedback | Copyright © 2010 Farlex, Inc.
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. Terms of Use.