Your goal should be to build and manage a diversified portfolio of stocks and bonds with the lowest possible fees and the greatest possible tax efficiency. ETFs offer seven advantages over index mutual funds: lower cost, greater tax efficiency, better tax management, easier asset allocation, easier portfolio rebalancing, no fraud and you can short ETFs.
A stock like security that follows an index, a commodity or a basket of assets like an indexed mutual fund. Securities like ETFs trades like a stock. ETFs prices change throughout the day, like a stock, as they are bought and sold.
Steps to consider as you make your first trade.
Common and preferred are the two main forms of stock; however, it’s also possible for companies to customize different classes of stock in any way they want.
Stocks are shares in ownership of a company. Stocks represents a claim on the company’s assets and earnings. As you increase your holdings of a stock, your ownership stake in the company increases. Whether you say shares, equity, or stock, it all means the same thing.
Everyone has their favorite stock market myths but here are a few you might like to add to the collection:
ETFs are Exchange Traded Funds. They act like Mutual Funds but they can be traded intra day like a stock. Learn more.