Basket Of Securities
A basket of securities is a collection of multiple individual securities combined into a single investment, designed to represent a broader market, asset class, or investment objective. The arrangement is commonly used in funds and portfolios to achieve diversification.
Example: An index fund tracks a market index by containing a basket of securities chosen to mirror the index's composition. For example, an ETF that tracks the S&P 500 contains a basket composed of the 500 large-cap U.S. stocks.
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