What's the process for buying Meta stock?

Understanding Traditional Stock Acquisition for Meta Platforms (META)

For individuals seeking direct ownership in Meta Platforms, Inc. (formerly Facebook), the conventional route involves engaging with the traditional financial markets. This process, while seemingly intricate, is well-established and regulated, offering a clear pathway to becoming a shareholder in a publicly traded company. It's crucial to understand this foundational method before exploring more nascent, crypto-native alternatives.

The Conventional Path: Brokerage Accounts

The primary gateway to buying stocks like Meta's is through a brokerage firm. These financial institutions act as intermediaries, executing buy and sell orders on behalf of investors on stock exchanges.

1. Choosing a Brokerage Firm:

   • Discount Brokers: These firms offer low-cost trading, often with zero-commission trades for stocks and ETFs. They typically provide self-directed trading platforms and minimal research or advisory services. Examples include Fidelity, Charles Schwab, Robinhood, E*TRADE, and Vanguard. They are ideal for investors who prefer to conduct their own research and make their own trading decisions.
   • Full-Service Brokers: These firms offer a comprehensive suite of services, including personalized financial advice, wealth management, tax planning, and in-depth research. While they come with higher fees, they are suited for investors who require professional guidance and a more hands-on approach to their financial planning.
   • Robo-Advisors: A hybrid option, robo-advisors use algorithms to manage portfolios based on an investor's risk tolerance and financial goals. They offer automated investing at a lower cost than traditional financial advisors.

2. Opening and Funding Your Account:

   • Application Process (KYC): Opening a brokerage account typically involves an application process that complies with "Know Your Customer" (KYC) regulations. This requires providing personal information such as your full name, address, date of birth, Social Security Number (SSN) or Taxpayer Identification Number (TIN), and employment details. This information is used to verify your identity and ensure compliance with anti-money laundering (AML) laws.
   • Account Types: You'll need to choose an account type, most commonly a taxable brokerage account or a retirement account like an Individual Retirement Account (IRA).
   • Funding Methods: Once your account is approved, you'll need to deposit funds. Common methods include:
     • Electronic Funds Transfer (ACH): Linking your bank account for direct transfers, typically taking 1-3 business days.
     • Wire Transfer: Faster but often incurring fees.
     • Check Deposit: Slower processing time.
     • Account Transfer (ACATS): Transferring assets from another brokerage account.

Navigating the Market: Ticker Symbols and Order Types

With a funded brokerage account, the next step involves identifying Meta Platforms and placing a buy order.

1. Identifying Meta (Ticker Symbol "META"):

   • Every publicly traded company on a stock exchange has a unique identifier called a ticker symbol. For Meta Platforms, Inc., this symbol is "META."
   • Meta is listed on the NASDAQ exchange, one of the two major stock exchanges in the United States, known for listing technology and growth companies.
   • When searching on your brokerage platform, simply enter "META" into the search bar to find the company's stock.

2. Understanding Order Types:

   • Market Order: This is the simplest order type, instructing your broker to buy or sell shares immediately at the best available current market price. While it guarantees execution, it does not guarantee a specific price, which can be a concern in volatile markets where the price might change between placing the order and its execution.
   • Limit Order: This order specifies the maximum price you are willing to pay per share (for a buy order) or the minimum price you are willing to accept (for a sell order). A limit order will only be executed if the stock's price reaches or surpasses your specified limit. If the price does not meet your limit, the order may not be filled.
   • Stop Order (or Stop-Loss Order): This order becomes a market order once a specified "stop price" is reached or passed. For example, a stop-loss order to sell Meta at $100 means if Meta's price drops to $100, your order converts to a market order to sell. This is primarily used to limit potential losses.
   • Stop-Limit Order: A refinement of the stop order, it becomes a limit order once the stop price is reached. This means if the stop price is hit, it converts into a limit order at a specified limit price, offering more control over the execution price than a simple stop order.

Execution and Ownership

Once an order is placed, the brokerage firm sends it to the relevant exchange for execution.

• Order Execution: If your order conditions (e.g., market price for a market order, limit price for a limit order) are met, the order is executed. This means you have successfully bought the shares.
• Settlement: In traditional stock markets, trades typically settle on a T+2 basis, meaning the actual transfer of ownership and funds occurs two business days after the trade date.
• Ownership Rights: As a shareholder of Meta, you gain certain rights, including:
  • Voting Rights: The ability to vote on company matters at shareholder meetings (e.g., election of board members, major corporate actions). Each share typically represents one vote.
  • Dividends: Eligibility to receive a portion of the company's profits, if Meta chooses to issue dividends (Meta has not historically paid cash dividends).
  • Claim on Assets: In the event of liquidation, shareholders have a residual claim on the company's assets after creditors are paid.

This traditional process provides direct legal ownership of Meta shares, backed by established regulatory frameworks and investor protections (such as SIPC insurance in the US).

Bridging Worlds: Meta, Web3, and the Rise of Tokenized Assets

While the direct purchase of Meta stock is confined to traditional financial markets, Meta Platforms itself is a prominent player in the evolving Web3 and metaverse landscape. This deep involvement creates an interesting nexus between traditional investing and the crypto world, particularly through the concept of tokenized assets.

Meta's Web3 Vision and its Crypto Connection

Meta Platforms' rebranding from Facebook signified a monumental strategic shift towards building the metaverse – a persistent, interconnected set of virtual spaces where users can interact, socialize, work, and transact. This vision is inherently tied to many principles of Web3 and blockchain technology.

• Metaverse Ambitions: The metaverse, as envisioned by Meta, relies on digital ownership, interoperability, and creator economies. These are areas where Non-Fungible Tokens (NFTs) and other blockchain-based solutions are central. Meta is investing heavily in VR/AR hardware (Quest headsets), software platforms (Horizon Worlds), and the underlying infrastructure to support these digital economies.
• NFTs and Digital Ownership: Meta has already integrated NFTs on platforms like Instagram and Facebook, allowing users to showcase their digital collectibles. The long-term goal is to facilitate the buying, selling, and creation of digital assets within the metaverse, providing creators with new monetization opportunities and users with verifiable ownership of digital goods.
• The Diem Project (Former Libra): Although ultimately unsuccessful, Meta's attempt to launch its own stablecoin, Diem (formerly Libra), demonstrated its early and serious interest in creating a blockchain-based financial system. While Diem faced significant regulatory hurdles, it highlighted Meta's recognition of the potential for decentralized finance and digital currencies to reshape commerce and social interaction. This past endeavor underscores the company's understanding of the blockchain's transformative power, even if its direct implementation was thwarted.
• Decentralized Identity and Interoperability: Key tenets of Web3, such as decentralized identity (allowing users more control over their digital personas) and interoperability (seamless movement of assets and identities across different virtual worlds), are crucial for a truly open and thriving metaverse. Meta's future products and services will likely need to engage with these decentralized technologies to achieve their full potential.

In essence, Meta's future growth and strategic direction are inextricably linked to the success and adoption of Web3 technologies, even if Meta itself is not a blockchain company in the traditional sense. This makes the intersection of Meta's value with crypto particularly relevant.

Exploring Tokenized Stocks: A Crypto Parallel

For crypto users, a direct parallel to buying Meta stock in a decentralized environment comes in the form of "tokenized stocks" or "synthetic assets." These are blockchain-based tokens designed to mirror the price movements of traditional securities like Meta shares.

• Definition: Tokenized stocks are digital assets on a blockchain that represent the value of an underlying traditional stock. They are "synthetic" because you don't directly own the underlying share, but rather a token whose value is pegged to it.
• How They Work:
  1. Collateralization: These tokens are typically backed by collateral, often other cryptocurrencies (like stablecoins or the platform's native token) locked into a smart contract. This collateral ensures the synthetic asset's value stability relative to its underlying asset.
  2. Oracles: Decentralized oracle networks play a critical role. They feed real-world price data of Meta stock from traditional exchanges onto the blockchain. This allows the smart contract to accurately adjust the synthetic token's value and manage its collateralization ratio.
  3. Minting and Burning: Users can mint (create) tokenized Meta by providing sufficient collateral and then burn (destroy) the tokens to reclaim their collateral. This mechanism helps maintain the peg.
• Examples (Conceptual): Platforms like Synthetix (offering synths like sAAPL, sTSLA) or the now-defunct Mirror Protocol (which offered mTSLA, mGOOGL, etc.) have historically provided ways to gain exposure to traditional stocks in a decentralized manner. These are examples of how the technology can function, illustrating the concept rather than promoting specific platforms.
• Benefits of Tokenized Stocks:
  • Fractional Ownership: Just like cryptocurrencies, tokenized stocks can be divided into very small units, making it possible for investors to buy fractions of even high-priced shares, which can be less accessible in traditional markets.
  • 24/7 Trading: Unlike traditional exchanges with fixed operating hours, decentralized platforms operate continuously, allowing for trading at any time, day or night, across different time zones.
  • Lower Fees (potentially): While gas fees on some blockchains can be high, the trading fees on decentralized exchanges might be lower than traditional brokerage commissions, especially for frequent traders.
  • Increased Accessibility: Tokenized stocks can open up investment opportunities to individuals in regions where access to traditional stock markets might be restricted or burdensome due to regulatory or financial barriers.
  • Transparency and Auditability: All transactions on a blockchain are publicly recorded and auditable, offering a high degree of transparency compared to opaque traditional financial systems.
• Risks of Tokenized Stocks:
  • Regulatory Uncertainty: The legal and regulatory status of tokenized securities is still evolving in many jurisdictions. They may be considered unregistered securities, leading to potential legal complications or delisting.
  • Smart Contract Risk: The underlying smart contracts that govern these tokens are susceptible to bugs, exploits, or vulnerabilities, which could lead to loss of funds.
  • Liquidity Issues: The trading volume and liquidity for tokenized stocks may be significantly lower than for their traditional counterparts, leading to higher slippage and difficulty executing large orders.
  • Oracle Centralization/Manipulation: The reliance on price oracles introduces a potential point of failure. If an oracle is compromised or provides incorrect data, the peg of the tokenized asset could be broken.
  • Lack of Direct Ownership Rights: Holders of tokenized stocks do not typically possess the same rights as traditional shareholders (e.g., voting rights, dividend claims) as they do not directly own the underlying equity. Their ownership is purely synthetic.
  • Custody Risks: While self-custody offers control, it also shifts the responsibility for security entirely to the individual. Loss of private keys or wallet compromise means irreversible loss of assets.

The Decentralized Approach: Acquiring Exposure to Meta's Value in the Crypto Space

For crypto-native investors, the interest in Meta Platforms can manifest in two distinct ways within the digital asset ecosystem: through the nascent market for tokenized traditional assets or via investments in projects that align with Meta's strategic Web3 objectives.

Using Decentralized Exchanges (DEXs) for Tokenized Assets

Decentralized exchanges (DEXs) are blockchain-based platforms that facilitate peer-to-peer cryptocurrency trading without the need for a central intermediary. They operate through smart contracts, offering a non-custodial trading environment.

1. Understanding DEXs:
   • Automated Market Makers (AMMs): Many DEXs, like Uniswap or SushiSwap, use an AMM model. Instead of an order book, they rely on liquidity pools—funds provided by users (liquidity providers) that enable instant trading between different assets. The price is determined by the ratio of assets in the pool.
   • Order Book DEXs: Some DEXs, particularly on newer blockchains or Layer 2 solutions, still utilize an order book model similar to traditional exchanges, but without a central entity holding funds.
2. Process of Buying Tokenized META (e.g., sMETA, mMETA):
   • Platform Selection: Identify a DEX or a specialized synthetic asset platform that offers a tokenized version of Meta stock (e.g., sMETA on Synthetix, if available, or similar synthetic tokens on other protocols). This often requires research into the specific blockchain network (Ethereum, Polygon, BNB Chain, etc.) on which these tokens exist.
   • Wallet Connection: Connect a compatible Web3 wallet (e.g., MetaMask, WalletConnect) to the DEX or platform. Your wallet holds your cryptocurrency assets and acts as your identity on the blockchain.
   • Acquiring Base Crypto: Ensure you have the necessary base cryptocurrency (e.g., ETH, USDC, USDT, or the platform's native token) in your wallet to swap for the tokenized Meta asset. You might need to acquire this crypto from a centralized exchange first.
   • Swapping/Minting:
     • Swapping: On an AMM DEX, you would "swap" your base crypto for the tokenized Meta asset from a liquidity pool.
     • Minting: On synthetic asset protocols, you might "mint" the tokenized Meta by providing specific collateral (e.g., stablecoins or the protocol's governance token) which is locked into a smart contract.
   • Gas Fees: All transactions on a blockchain incur "gas fees," paid in the network's native cryptocurrency (e.g., ETH for Ethereum). These fees compensate validators for processing your transaction and can fluctuate significantly based on network congestion.
   • Slippage: When executing trades on AMM DEXs, especially for assets with lower liquidity, you might experience "slippage." This refers to the difference between the expected price of a trade and the price at which the trade is actually executed. It can occur if the asset's price moves significantly during the transaction or if the liquidity pool is shallow.

It is critical to reiterate that holding a tokenized Meta asset does not equate to holding shares of Meta Platforms, Inc. in the traditional sense. It is a derivative product whose value is derived from the stock's price.

Indirect Crypto Exposure: Metaverse and Web3 Tokens

Another approach for crypto investors interested in Meta's long-term vision is to invest in cryptocurrencies and blockchain projects that are building the broader Web3 and metaverse ecosystem. This provides indirect exposure to the themes that Meta itself is pursuing.

• Metaverse Platform Tokens:
  • Projects like Decentraland (MANA), The Sandbox (SAND), Axie Infinity (AXS), or Enjin Coin (ENJ) are building decentralized virtual worlds, gaming platforms, and digital asset infrastructure.
  • Investing in these tokens means you are betting on the growth of the overall metaverse concept, a vision that Meta also shares. If the metaverse becomes widely adopted, these decentralized platforms, alongside Meta's centralized offerings, could see significant value appreciation.
• Web3 Infrastructure Tokens:
  • These include cryptocurrencies related to decentralized storage (e.g., Filecoin, Arweave), decentralized computing (e.g., Render Token), decentralized identity solutions, or interoperability protocols (e.g., Polkadot, Cosmos).
  • As Meta builds out its metaverse, it will either create its own proprietary infrastructure or, more likely, interact with and potentially leverage elements of the broader Web3 infrastructure for certain functions. Investing in these foundational technologies can offer exposure to the underlying building blocks of the decentralized internet that Meta is also trying to shape.
• NFT-related Cryptocurrencies:
  • Tokens associated with NFT marketplaces (e.g., Immutable X - IMX for scaling NFTs on Ethereum) or NFT lending protocols could also be considered. As Meta integrates NFTs more deeply into its platforms, the overall NFT market could expand, benefiting these related crypto projects.

Crucial Distinction: It is paramount to understand that investing in these metaverse or Web3 tokens is not equivalent to buying Meta stock. You are investing in entirely separate blockchain projects that, while aligned with the themes of Meta's future, do not represent direct ownership or financial ties to Meta Platforms, Inc. These are distinct investments with their own unique risks and potential rewards, driven by the success of their respective decentralized ecosystems rather than Meta's corporate performance.

Regulatory Landscape and Future Outlook

The convergence of traditional finance (TradFi) and decentralized finance (DeFi) via tokenized assets presents both immense opportunities and significant regulatory challenges. Understanding this evolving landscape is critical for anyone considering crypto-native ways to gain exposure to traditional assets like Meta stock.

Navigating the Legal Complexities of Tokenized Securities

The classification and regulation of tokenized stocks remain one of the most substantial hurdles for widespread adoption.

• SEC Stance (US): In the United States, the Securities and Exchange Commission (SEC) generally applies the "Howey Test" to determine if an asset is a security. Tokenized stocks, being derivatives of traditional securities, are almost certainly viewed as securities by the SEC. This means they are subject to strict registration requirements and regulations designed to protect investors. Many tokenized stock offerings have operated in a gray area, often facing enforcement actions or being shut down due to non-compliance with securities laws.
• International Variations: While the US takes a cautious approach, other jurisdictions are exploring more progressive regulatory frameworks. Countries like Switzerland, Liechtenstein, and Singapore have made strides in creating legal clarity for security tokens, providing examples of how such assets could be regulated. However, the fragmented global regulatory environment complicates cross-border trading and issuance.
• Classification Challenges: The digital nature of tokenized assets blurs traditional lines. Are they commodities, currencies, or securities? The answer often dictates the regulatory body responsible and the rules that apply. The lack of a unified global classification framework creates uncertainty and hinders institutional adoption.
• Impact on Adoption: The regulatory ambiguity is a major deterrent for institutional investors and traditional financial firms, who require clear legal frameworks before engaging with tokenized securities at scale. This limits liquidity and market depth, primarily confining current tokenized stock activity to niche crypto communities.

The Convergence of Traditional Finance and Blockchain

Despite the current regulatory challenges, the long-term outlook points towards an increasing convergence between traditional financial markets and blockchain technology.

• Potential for Mainstream Adoption: As regulatory clarity emerges, tokenized assets could become a more accepted and accessible investment vehicle. This could lead to:
  • Increased Efficiency: Streamlined settlement processes (T+0 instead of T+2), lower back-office costs, and reduced counterparty risk through blockchain's inherent transparency and immutability.
  • Enhanced Transparency: Publicly verifiable ownership and transaction histories, which could reduce fraud and increase trust.
  • Greater Global Access: Democratizing investment opportunities by breaking down geographical barriers and enabling fractional ownership for a broader investor base.
• Role of Institutional Investors: Large financial institutions are actively exploring blockchain technology for various applications, including asset tokenization. Their entry into this space, either through direct participation or by offering regulated tokenized products, would significantly boost market liquidity and legitimacy.
• Central Bank Digital Currencies (CBDCs): The development of CBDCs by central banks worldwide could further accelerate the integration of blockchain into financial systems. CBDCs could provide a stable, regulated medium for settling tokenized asset transactions, removing some of the volatility and regulatory uncertainty associated with current stablecoins.
• Evolution of Digital Asset Exchanges: Traditional exchanges and brokers may eventually offer their own tokenized securities or integrate with blockchain networks to provide access to these assets, blurring the lines between "crypto trading" and "stock trading."

The future of investment markets may well be a hybrid one, where traditional assets are increasingly tokenized, and blockchain technology underpins much of the financial infrastructure, offering investors diverse pathways to gain exposure to companies like Meta Platforms.

Key Considerations Before Investing in Meta (Traditional or Tokenized)

Whether pursuing traditional stock ownership or exploring crypto-native exposure to Meta Platforms, thorough due diligence and a robust risk management strategy are paramount. The underlying asset (Meta's business) carries its own set of risks, compounded by the specific characteristics of the investment vehicle.

Due Diligence and Risk Management

1. Fundamental Analysis for Meta Platforms:
   • Company Financials: Evaluate Meta's revenue growth, profitability, debt levels, cash flow, and balance sheet strength. Understand its quarterly and annual reports.
   • Competitive Landscape: Assess Meta's position within the social media and technology sectors. Who are its main competitors (TikTok, Google, Apple)? How are they innovating?
   • Management Team and Strategy: Analyze the leadership's vision, execution capabilities, and strategic direction, particularly concerning the metaverse and AI.
   • Market Share and User Engagement: Monitor user growth, engagement metrics, and advertising revenue trends across its family of apps (Facebook, Instagram, WhatsApp).
   • Regulatory Environment: Consider the ongoing antitrust investigations, data privacy regulations (e.g., GDPR, CCPA), and potential future legislative actions that could impact Meta's business model.
   • Metaverse Progress: While a long-term bet, assess the tangible progress, adoption rates, and monetization strategies for its metaverse initiatives.
2. Technical Analysis (for both stock and tokenized asset):
   • Examine price charts, trading volumes, and technical indicators (e.g., moving averages, RSI, MACD) to identify trends, support/resistance levels, and potential entry/exit points.
3. Understanding Market Volatility:
   • Both Meta stock and its tokenized counterparts can experience significant price fluctuations. Understand that past performance is not indicative of future results.
   • The crypto market, in particular, is known for its heightened volatility compared to traditional stock markets.
4. Diversification:
   • Avoid putting all your capital into a single asset. Diversify your portfolio across different asset classes (stocks, bonds, crypto, real estate) and within those classes (various industries, different cryptocurrencies) to mitigate risk.
5. Specific Risks of Tokenized Assets:
   • Smart Contract Risk: As detailed earlier, vulnerabilities in the code can lead to irreversible loss of funds. Only interact with audited and reputable protocols.
   • Regulatory Risk: The evolving legal status of tokenized securities means they could be subject to enforcement actions, delisting, or restrictions in certain jurisdictions.
   • Oracle Risk: Dependence on external data feeds means price manipulation or oracle failure could depeg the synthetic asset.
   • Liquidity Risk: Tokenized assets may have lower trading volumes than their traditional counterparts, making it harder to buy or sell large positions without significant price impact.

Custody and Security

The method of custody—how your assets are held and protected—differs significantly between traditional stocks and tokenized assets, each with its own security implications.

1. Traditional Stock Custody (Brokerage Accounts):
   • When you buy Meta stock through a broker, the shares are typically held "in street name" by the brokerage firm on your behalf.
   • Brokerage Security: Reputable brokerage firms employ advanced security measures, including encryption, two-factor authentication (2FA), and regular security audits.
   • Investor Protection: In the US, the Securities Investor Protection Corporation (SIPC) protects investors against the loss of cash and securities held by a failed brokerage firm, up to $500,000 (including $250,000 for cash). This provides a layer of protection against the broker's insolvency, though it does not protect against market losses.
   • FDIC Insurance: While SIPC protects securities, the Federal Deposit Insurance Corporation (FDIC) insures cash balances held in bank accounts (often linked to brokerage accounts) up to $250,000 per depositor.
2. Crypto Custody (Tokenized Assets):
   • Self-Custody (Non-Custodial Wallets): This is the preferred method for many crypto users. You hold your own private keys, giving you complete control over your assets.
     • Hardware Wallets (Cold Storage): Devices like Ledger or Trezor store private keys offline, offering the highest level of security against online threats. This is recommended for significant holdings.
     • Software Wallets (Hot Wallets): Mobile or desktop applications (e.g., MetaMask, Trust Wallet) are convenient but are connected to the internet and thus more susceptible to hacking if your device is compromised.
     • Importance of Private Key Management: If you hold your own private keys, you are solely responsible for their security. Losing your private keys (or seed phrase) means permanent loss of your assets. Sharing them makes you vulnerable.
   • Exchange Custody (Custodial Wallets): If you leave your tokenized assets on a centralized crypto exchange, the exchange holds your private keys.
     • Convenience: Easier for trading and less responsibility for key management.
     • Counterparty Risk: You are trusting the exchange with your assets. If the exchange is hacked, goes bankrupt, or faces regulatory issues, your funds could be at risk. Crypto exchanges typically do not offer the same level of investor protection as traditional brokerage firms.

Regardless of the investment path chosen, a diligent approach to understanding the underlying asset and the specific risks of the investment vehicle is non-negotiable.

Final Thoughts: A Hybrid Investment Future

The journey to gain exposure to Meta Platforms, Inc. reveals a fascinating intersection of traditional finance and the rapidly evolving crypto world. While the direct and legally recognized path to acquiring Meta stock remains firmly within the established frameworks of brokerage accounts and stock exchanges, the strategic direction of Meta itself is deeply entwined with the principles and technologies of Web3 and the metaverse.

For investors, this presents a bifurcated landscape of opportunity:

1. The Traditional Path: For direct ownership, voting rights, and the protections afforded by established securities regulations, buying Meta's "META" stock through a licensed brokerage firm is the unequivocal method. This route is mature, regulated, and offers clear legal recourse.

2. The Crypto-Native Path: For those seeking exposure within the decentralized ecosystem, options include:

   • Tokenized Stocks (Synthetic Assets): A nascent and still developing area that attempts to mirror the price movements of Meta stock on a blockchain, offering potential benefits like fractional ownership and 24/7 trading, but carrying significant regulatory, smart contract, and liquidity risks.
   • Indirect Exposure through Metaverse/Web3 Tokens: Investing in cryptocurrencies and projects that are building the broader decentralized metaverse and Web3 infrastructure, aligning with Meta's strategic vision without holding its equity directly. This is a bet on the sector rather than the specific company.

The landscape is continuously evolving. Regulatory bodies are grappling with how to integrate tokenized assets safely and legally into existing financial systems. Simultaneously, Meta Platforms and countless decentralized projects are innovating at a breakneck pace, shaping the future of digital interaction and commerce.

Ultimately, the choice of how to gain exposure to Meta's value proposition depends on an individual investor's risk tolerance, investment goals, and comfort level with different regulatory and technological environments. As the lines between traditional finance and blockchain continue to blur, a future where investors can seamlessly navigate both worlds, perhaps even through hybrid investment products, appears increasingly likely. Prudent investors will stay informed, conduct thorough research, and understand the distinct characteristics and risks associated with each approach.