When an Investor Buys Stock on E-Trade, She Is Using

question 10

True/False

When an investor buys stock on E-trade, she is using a primary market.

---

Definitions:

Indexed Equity

A type of equity investment that tracks the performance of a market index, aiming to replicate its returns and risk characteristics.

Mutual Funds

Financial instruments that aggregate funds from various investors to acquire a varied collection of equities, debts, or alternative assets.

Consumer Price Index

An index that measures the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

Substitutes

Products that serve similar purposes. An increase in the price of one will cause an increase in demand for the other (examples are hamburgers and tacos, butter and margarine, Chevrolets and Fords).