What is the difference between an investor and a trader? A. There...
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Finance
What is the difference between an investor and a trader?
A
There is no difference. Both investors and traders hold stocks and bonds for a long period of time and collect either the dividend from a corporation or the coupon payment from the bond.
B
Investors hold stocks and bonds for a long period of time and collect either the dividend from a corporation or the coupon payment from the bond. A trader buys and sells securities and bonds hoping to take advantage of price arbitrage in a short time horizon.
C
Investors buy and sell securities and bonds hoping to take advantage of price arbitrage in a short time horizon. A trader holds stocks and bonds for a long period of time and collects either the dividend from a corporation or the coupon payment from the bond.
D
None of the above.
Part
What is financial arbitrage?
A
The process of buying and reselling securities to profit from price changes over a brief period of time.
B
The process of buying and reselling securities to profit from price changes over a long period of time.
C
The process of selling securities only.
D
None of the above.
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