What are stocks and ETFs in general?

A stock (also known as equity) is a type of security representing the ownership of a fraction of an incorporated company. Stocks are publicly traded on stock exchanges and comprise various geographical regions and industries.

ETFs (“Exchange Traded Funds”) are financial products that involve a collection of securities and often track an underlying index. An ETF can therefore be described as a portfolio of different stocks, bonds or commodities. ETFs make it easy to invest in a large set of companies through a single product. For example, the FTSE 100-ETF would represent the FTSE 100 index, a portfolio containing the 100 largest companies listed on the London Stock Exchange.

Please be aware of the considerable risks associated with investing in stocks or ETFs. You can read more about this here.

Keep in mind

Bitpanda Stocks enables you to make fractional investments. To allow for this, Bitpanda issues a derivative contract which is backed by the underlying stock or ETF. You can read more about this here.