Tuesday, February 3, 2009

Investing Term of the Day - Exchange Traded Fund


Term of the Day - Exchange Traded Fund

For Tuesday, February 3, 2009


Check Out the New, Hilarious Section on InvestorWords:

Our premier glossaries, InvestorWords.com and BusinessDictionary.com, have received high acclaim for providing the most clear, concise, and comprehensive financial and business terms and definitions online. We realize, however, that many of these definitions still have room for "interpretation."
Take a look at the amusing takes we found for a number of popular terms!


Term of the Day - Exchange Traded Fund

ETF. A fund that tracks an index, but can be traded like a stock. ETFs always bundle together the securities that are in an index; they never track actively managed mutual fund portfolios (because most actively managed funds only disclose their holdings a few times a year, so the ETF would not know when to adjust its holdings most of the time). Investors can do just about anything with an ETF that they can do with a normal stock, such as short selling. Because ETFs are traded on stock exchanges, they can be bought and sold at any time during the day (unlike most mutual funds). Their price will fluctuate from moment to moment, just like any other stock's price, and an investor will need a broker in order to purchase them, which means that he/she will have to pay a commission. On the plus side, ETFs are more tax-efficient than normal mutual funds, and since they track indexes they have very low operating and transaction costs associated with them. There are no sales loads or investment minimums required to purchase an ETF. The first ETF created was the Standard and Poor's Deposit Receipt (SPDR, pronounced "Spider") in 1993. SPDRs gave investors an easy way to track the S&P 500 without buying an index fund, and they soon become quite popular.


Featured Article from InvestorGuide University

Health Insurance

Learn about the various kinds of health insurance available, including HMOs, PPOs, FFS plans, and Medicare. Find information about the advantages and disadvantages of each type of plan to help you decide what plan is best for you.


Click here to read the article...


Special Offers

ACM
Trading Currencies Can Be Easy As 1, 2, 3. Try a Free Practice Account Today.

Click Here to View This Offer...

INVESTools
Start trading stocks on insights - not instincts. Attend a free 2-hr Investools class.

Click Here to View This Offer...

trade MONSTER
Stock Traders! Open an account at trade MONSTER™ & discover a new era in online trading.

Click Here to View This Offer...


Quote of the Day

Not he who has little, but he who wishes more, is poor. - Seneca


Search for a term in our comprehensive investing dictionary


More links to important investing resources

  • Business Dictionary
  • BusinessDictionary.com features over 20,000 definitions and over 115,000 links between related terms providing a clear and concise description of any and all business terms.

  • InvestorGuide Stock Research
  • Our powerful, comprehensive stock research tool covers thousands of tickers. It provides everything you need to know about a stock including charts, news, profile, earnings data, analysis and much more. Try it Today!

  • Our Other Newsletters
  • The InvestorGuide Daily summarizes important financial news and commentary of the day, and the InvestorGuide Stock of the Day provides comprehensive research and information about a stock that is making news in the markets.





To unsubscribe from InvestorWords Term of the Day or change your subscription preferences click here.
Or send a message to investor.13@remove.ms00.net
To unsubscribe from all InvestorGuide and InvestorWords mailings, send a message to: investor@remove.ms00.net
For the complete disclaimer please click here.
pmguid:u.b4yk.xuil


No comments:

Blog Archive

Promote Your Blog

Life Insurance | Health Insurance | Auto Insurance


Investors Please Listen !

 
More than 100 kinds of Insurance products from more than
20 companies under one roof.



Call: 9818269396 
investorspleaselisten@in.com
www.investorspleaselisten.blogspot.com

 

 

Safe Harbor:

The information contained and provided on this Website provides Investment advice for the education of investors. The posts are an information service only. Recommendations, opinions or suggestions are given with the understanding that readers acting on this information assume all risks involved. We do not assume any responsibility or liability resulting from the use of such information, judgment and opinions for Trading or Investment purposes.
Powered by Olark
Advertising Learn to Invest