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Buying Low and Selling High

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In the global economy what does it mean to buy low and sell high and what type of business efficiently uses this principle?

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Solution Summary

The solution describes the kind of business needs to buy low and sell high.

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For investors and entrepreneurs, the rule of the thumb in order to keep afloat in the competitive global arena is to buy low and sell high. For example in the manufacturing sector, you have to produce products that are will sell higher than the production cost. This can only be possible by buying raw materials at its lowest price.

Another typical example: In the U.S. stock market, brokers/investors are encouraged to buy stocks traded at low prices. To earn the maximum profit. The stocks can then be sold at a period where its ...

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