What Does Hold Stock Mean?
What Does Hold Stock Mean?. You may hold stocks as long-term investments because of their risk versus reward characteristics. As a benchmark for U.S. stocks, the S&P 500 has averaged 11 percent annual returns since its 1957 creation. This 11 percent average, however, includes one 38 percent gain in 1995 alongside one 22 percent loss in 2002. Rather than frequent trading, you may hold stocks throughout the economic cycle to target an average return, lower commission expenses and avoidance of mistakes.
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