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Issue:

Business

 

Written by:

Colleen B

 

Date added:

December 23, 2011

 

Level:

College

 

Grade:

A

 

No of pages / words:

1 / 254

 

Was viewed:

3477 times

 

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Essay content:

The key is reducing transaction costs, search costs, analysis costs and other active trading costs. With reduced management costs we believe that this strategy will produce returns equal to alternatives requiring active management. These actively managed alternatives have high transaction costs and there are more chances of mistakes in stock selection...
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In addition, the added benefits of active trading are equal or less than the added costs. In a Buy and Hold strategy the stock selection process is very important and all the analysis is done at the beginning. We intend to hold the stock until the objectives or conditions for selling outlined in the abstract is met...
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