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Also known as ETF. A basket of stocks similar to an index mutual fund. However, there are a number of important differences between ETFs and mutual funds. The ETF can be traded within the day, they can be shorted, purchased on margin and there even exists options on some ETFs.

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Exchange Traded Funds (ETF)

ETF

Exchange Traded Funds

Exchange

basket of stocks

day traded

shorted

purchased on margin