Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

7. Receivables and Investments

Introduction to Investments in Securities

Financial Accounting

7. Receivables and Investments

Introduction to Investments in Securities

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Multiple Choice

What is a primary benefit of choosing an exchange-traded fund (ETF) over investing in an individual stock?

ETFs guarantee higher returns than individual stocks.

ETFs provide instant diversification across multiple securities.

ETFs are not subject to market risk.

ETFs can only be purchased at the end of the trading day.

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Understand the concept of an exchange-traded fund (ETF). An ETF is a type of investment fund that holds a collection of securities, such as stocks, bonds, or commodities, and trades on an exchange like a stock.

Compare ETFs to individual stocks. While individual stocks represent ownership in a single company, ETFs provide exposure to multiple securities, offering diversification.

Evaluate the benefits of diversification. Diversification reduces the risk associated with investing in a single security by spreading investments across various assets, which is a key advantage of ETFs.

Clarify misconceptions in the options provided. ETFs do not guarantee higher returns, are subject to market risk, and can be traded throughout the trading day, unlike mutual funds which are priced at the end of the day.

Conclude that the primary benefit of ETFs over individual stocks is their ability to provide instant diversification across multiple securities, reducing risk and offering broader market exposure.