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:

Project Analysis

The process of evaluating the viability and potential return on investment of a project before committing resources to it.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not influence future business decisions.

Cash Flows

Refers to the net amount of cash and cash-equivalents being transferred into and out of a business.

Patent Rights

Legal protections granted to inventors, giving them exclusive rights to use, make, and sell their invention for a certain period of time.