Why Is Investment Trading Less Expensive Online

question 95

Multiple Choice

Why is investment trading less expensive online?

• A)It is not less expensive.
• B)Because electronic stocks are worth less.
• C)Because investors can buy and sell investments themselves without hiring a trader.
• D)Because there are good sales online.
• E)It is a less popular option,therefore prices are lower. Trading is more inexpensive online because investors can buy and sell their own stocks,bonds,and mutual funds,without hiring someone to do it for them.

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Definitions:

Commercial Paper

A short-duration, uncollateralized debt security issued by companies, generally utilized for funding payroll, accounts receivable, and stock inventories.

Corporate Bonds

Securities issued by companies to raise financing, typically offering fixed interest payments over a defined period.

Coupon Bond

A type of bond that pays the holder a regular interest payment (the coupon) until maturity, at which point the principal amount is also repaid.

Yield To Maturity

The total return anticipated on a bond if it is held until the date it matures, including all payments from now until maturity.