Making an Investment in an Exchange-Traded Fund Is More Risky

question 14

True/False

Making an investment in an exchange-traded fund is more risky than buying the common shares of just one company.

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Definitions:

State and Local

Pertains to the government entities and authorities that operate below the federal level, including states, counties, cities, and towns.

Marginal Tax Rate

The percentage of tax applied to the final dollar of income, signifying the tax paid on any extra dollar earned.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the proportion of any additional income that will be taken in taxes.

Average Tax Rate

A calculation resulting from dividing an individual's or entity's total tax payments by their total taxable income, indicating the portion of income paid in taxes.