Beginning investors with small amounts to invest should
A) avoid stock investments completely.
B) invest all of their money in one high quality stock.
C) buy mutual funds or exchange traded funds (ETFs).
D) buy a portfolio of very low priced stocks (penny stocks).

Question

Quizplus · Accepted Answer

Mutual funds and ETFs allow beginning investors to diversify their investments, even with small amounts of money, reducing risk compared to investing in a single stock or high-risk penny stocks.

Beginning Investors with Small Amounts to Invest Should