SIE Exam Question 181: Answer and Explanation

Question: 181

The practice of buying and selling stocks rapidly throughout the day in the hope that the stocks will continue climbing or falling in value for the seconds to minutes that they are owned allowing for quick profits to be made is called ______________.

• A. Buy and hold
• B. Active trading
• C. Market timing
• D. Day trading

Correct Answer: D

Explanation:

The practice of buying and selling stocks rapidly throughout the day in the hope that the stocks will continue climbing or falling in value for the seconds to minutes that they are owned, allowing for quick profits to be made, is called day trading.