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General TradingE
Exchange Traded Fund (ETF)
An Exchange Traded Fund (ETF) is an investment fund that trades on stock exchanges like a regular stock. ETFs hold a basket of assets such as stocks, bonds, or commodities and offer diversification, liquidity, and typically lower fees than mutual funds.
Example
“Instead of buying individual tech stocks, the investor purchased shares of the QQQ ETF, which tracks the Nasdaq-100 index and gave instant diversified exposure to the top 100 non-financial Nasdaq companies.”