SIE Exam Question 94: Answer and Explanation

Question: 94

The length of time an investor plans to keep an investment is known as the ___________.

• A. Holding period
• B. Time horizon
• C. Quiet period
• D. Calendar period

Correct Answer: B

Explanation:

The length of time an investor plans or expects to keep an investment is known as the time horizon. The holding period refers to the length of time that an asset is actually held. During an IPO process, the SEC restricts the marketing department of the company from publicizing any information about the IPO to avoid insider trading. Calendar period does not refer to any specific investment concept.