Which investing approach is described as a strategy where you frequently buy and sell investments to beat the market, often with higher fees?

• A. Passive Investing
• B. IPO (Initial Public Offering)
• C. Active Investing
• D. Dollar-Cost Averaging

Answer: (C)

The idea being tested is trying to outperform the market through active decision‑making and more frequent trading. This approach involves picking investments, timing buys and sells, and using research or advisers to beat the market, which typically leads to higher trading costs and fees. Because those costs eat into returns, the goal is to surpass a benchmark even after fees, which is the hallmark of active investing.

Passive investing, by contrast, aims to mirror a market index with minimal trading and much lower fees, so it tries to match rather than beat the market. An IPO isn't an investing approach but a one‑time event where a company offers shares to the public. Dollar-cost averaging is a method of investing a fixed amount regularly to smooth out price swings, not a strategy to beat the market through frequent trading.