Question

What is the benefit of “long term investing”?
A. To protect the investor from the risk of a single company that performs poorly or goes bankrupt

B. To protect the investor from the risk of a single bad day in the market

C. By giving the investor advice on which stocks to purchase

Answer 1

A. To protect the investor from the risk of a single company that performs poorly or goes bankrupt

Long term investing allows investors to withstand short-term fluctuations in the market and potentially benefit from the overall growth of the market over time. By holding onto investments for a longer period, investors can reduce the risk associated with individual companies underperforming or facing financial difficulties. This approach allows for more stability and potentially higher returns over the long-term.