Which of the below statements is FALSE?
A) ETFs do not have ticker symbols.
B) ETFs can be sold short or bought on margin (i.e., with borrowed money) , and it is even possible to trade options on many ETFs.
C) To assure that the price of the ETF would be very close to the continuously known NAV of the portfolio, an agent could be commissioned to arbitrage between the ETF and the underlying portfolio and keep their values equal.
D) Rather than dealing directly with the fund company, investors buy ETF shares from another individual investor via an exchange at a price determined by supply and demand for the ETF, not the ETF's underlying NAV as is the case for mutual funds.
Correct Answer:
Verified
Q34: A mutual fund can reduce a variety
Q35: Organizations such as Morningstar and Lipper provide
Q36: _ allow investors to purchase funds from
Q37: Fund companies and distribution companies have developed
Q38: All the cost information on a fund,
Q40: The amount of investment needed to obtain
Q41: What is a family of funds? In
Q42: An important feature of the '40 Act
Q43: What are variable annuities?
Q44: The total shareholder costs of owning a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents