One of the historical trading abuses in the mutual fund industry was allowing selected investors to rapidly trade in and out of a mutual fund in order to profit on stale prices. This practice is called:

Respuesta :

The practice of the investors who trade in and out of the fund in order to make profit is known as Market timing.

Market timing is defined as the predictions an investor makes about price movement.

  • In other word, the strategy is when investor tries to identify the best times to be in the market and when to get out.

In conclusion, the practice of the investors who trade in and out of the fund in order to make profit is known as Market timing.

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