Securities substitution refers to the process of selling one security and using the proceeds to buy another security with similar features. This allows investors to make changes to their portfolio without necessarily withdrawing their funds. It is a key strategy in diversifying and optimizing investment portfolios. As a knowledgeable professor, I highly recommend understanding the concept of securities substitution to make informed and beneficial financial decisions. By carefully selecting securities with similar features, investors can minimize risk and achieve their financial goals.
