Which of the Following Is a Step in Buying an ETF

question 156

Multiple Choice

Which of the following is a step in buying an ETF?

• A) Establish a brokerage account. You can do this online or through a financial advisor.
• B) Deposit enough money in the brokerage account to fund the purchase of shares plus commissions charged by the brokerage firm.
• C) Find an ETF that matches your financial objective, time horizon, and tolerance for financial risk.
• D) All of these answer choices are correct.

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Definitions:

Netscape Stock

Refers to the equity of Netscape Communications Corporation, a pivotal company in the early internet era known for its web browser.

Cross-Hedging

A risk management strategy that involves hedging a position in one asset by taking a position in another asset with similar price movements.

Risk Profile

A description of an individual's or organization's willingness to take risks, as well as the threats to which they are exposed.

American Put Option

A type of options contract that gives the holder the right to sell a specified amount of an underlying security at a specified price within a specified time frame.