Investment research: ‘Buy’ and ‘sell’ are clear but what’s the point of the ‘hold’ rating awarded to stocks?
Even an absolute novice in the stock market understands what a ‘buy’ or ‘sell’ rating given by a research firm means. But ‘hold’? That’s not quite as intuitive, is it? The real question is: Is it even rational? Think about it—if a security is not worth buying today, why is it worth holding?
