Whois & Analysis for moneyshow.com

An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks.

An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day.

Most ETFs track an index, such as a stock index or bond index.

ETFs may be attractive as investments because of their low costs, tax efficiency, and stock-like features.

By 2013, ETFs were the most popular type of exchange-traded product.

To invest is to allocate money (or sometimes another resource, such as time) in the expectation of some benefit in the future.

The stock (also capital stock) of a corporation is constituted of the equity stock of its owners.

A single share of the stock represents fractional ownership of the corporation in proportion to the total number of shares.

In liquidation, the stock represents the residual assets of the company that would be due to stockholders after discharge of all senior claims such as secured and unsecured debt.

Stockholders' equity cannot be withdrawn from the company in a way that is intended to be detrimental to the company's creditors.

Trade, or commerce, involves the transfer of goods and/or services from one person or entity to another, often in exchange for money.

A network that allows trade is called a market.

Profit or normal profit is a component of (implicit) costs and not a component of business profit at all.

It represents the opportunity cost, as the time that the owner spends running the firm could be spent on running a different firm.

The enterprise component of normal profit is thus the profit that a business owner considers necessary to make running the business worth his or her while, i.e., it is comparable to the next-best amount the entrepreneur could earn doing another job.

Particularly if enterprise is not included as a factor of production, it can also be viewed a return to capital for investors including the entrepreneur, equivalent to the return the capital owner could have expected (in a safe investment), plus compensation for risk.

In other words, the cost of normal profit varies both within and across industries; it is commensurate with the riskiness associated with each type of investment, per the risk-return spectrum.