New Investment Key Terms

NEW INVESTMENT KEY TERM

Mutual Fund:

A professionally managed fund that pools lots of investors’ money in order to buy a basket of investments.

NEW INVESTMENT KEY TERM

ETF (Exchange Traded Fund):

A collection of stocks and bonds (or other securities) pooled into a single fund. You can buy and sell shares of ETFs on a stock exchange the same way you buy and sell stocks. Although they are very similar to mutual funds, unlike mutual funds, you can trade ETFs throughout the trading day.