Exchange Traded Funds
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Title: Exchange Traded Funds

Essay Details:

Subject: Business
Author: Carol J
Date: February 27, 2015
Level: University
Grade: A
Length: 10 / 2905

Essay text:

CHAPTER 2 Introduction to Exchange Traded Funds (ETF) Concept of ETFs ETFs are just what their name implies: baskets of securities that are traded, like individual stocks, on an exchange. An Exchange Traded Fund (ETF) is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange, thus experiencing price changes throughout the day as it is bought and sold. Because it trades like a stock whose price fluctuates daily, an ETF does not have its net asset value (NAV) calculated every day like a mutual fund does. By owning an ETF, you get the diversification of an index fund as well as the ability to sell short, buy on margin and purchase as little as one share...

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