Nyse Stock Quote

The New York Stock Exchange is one of the major stock exchanges in the United States and the world. However, since investment isn't something taught in most schools unless you're in a business or finance program, it's fairly common to have no idea what a stock exchange is about or how it works. The NYSE website has an entire section for the informed investor that explains the exchange and how it works. "Exchange Traded Funds, or ETFs, are increasingly popular investment vehicles. Before you decide to invest, there are some basic questions you should consider in order to make an informed investment decision.

An ETF is an investment product that allows an investor to buy and sell shares in a single security

that represents a fractional ownership of a portfolio of securities. Legally, ETFs are open-ended investment companies or unit investment trusts that are registered under the Investment Company Act of 1940.

ETFs are one type of structured exchange-traded product. There are other types as well, but they do not share all the characteristics of ETFs, even though they may be referred to as such in the popular press and on some websites. Examples of these other investment products include exchange traded notes (ETNs), equity linked notes, closed end funds and exchange traded vehicles (ETVs), among others.

ETFs are listed on a national securities exchange; they can be bought and sold like common stocks throughout the trading day. Individual investors may purchase or sell an ETF through a stock brokerage account. Investors may enter the same types of orders that are placed for shares of stock (including, for example, market and limit orders). There are also listed options on some ETFs.

Before investing in any financial instrument, you should understand its risks, costs, benefits and other characteristics. Investors should carefully read the prospectus and any other informational material available. ETF issuers' websites provide prospectuses, the statement of additional information and other information. Here are some of the questions you should ask yourself, your registered representative, and/ or your investment advisor to determine if an ETF is an appropriate investment for you, how it would fit into your portfolio, and how much of your portfolio should be allocated to it."

Below are some questions that the NYSE suggest you ask before investing in an ETF.

* What is the expenditure can I expect to incur with Exchange Traded Funds?

* How do I determine the value of an ETF on an intra-day basis?

* Do ETFs provide current income?

* What are the risks associated with investing in ETFs?

* Where can I find more information on ETFs?

"Investors should refer to an ETF prospectus to obtain a complete discussion of the risks involved in that ETF before investing," says the NYSE.