Definition of 'Hold'
In the financial world, the term "hold" refers to an investor's decision to keep a particular security in their portfolio. This can be done for a variety of reasons, such as the investor's belief that the security will continue to appreciate in value, or because they are waiting for a better time to sell.
There are a few different ways to hold a security. One way is to simply buy the security and hold it until you decide to sell it. Another way is to use a buy-and-hold strategy, which involves buying a security and then holding it for a long period of time, regardless of market fluctuations.
The decision of whether or not to hold a security is a personal one, and there is no right or wrong answer. However, it is important to consider all of the factors involved before making a decision, such as the security's risk profile, your investment goals, and your time horizon.
If you are considering holding a security, it is important to do your research and understand the risks involved. You should also have a plan in place for what you will do if the security's value decreases.
Holding a security can be a good way to build wealth over time. However, it is important to remember that there is no guarantee that a security will continue to appreciate in value. Therefore, it is important to be aware of the risks involved before making a decision to hold a security.
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