For Individual Investors Purchasing Exchange Traded Funds (ETFs), Which of the Following

question 58

Multiple Choice

For individual investors purchasing exchange traded funds (ETFs) , which of the following is the most important entity that plays a key role in the primary market for ETF shares?

• A)Authorized participants (APs) that interact with the ETF directly
• B)Managers of the ETF assets
• C)Market exchange officials overseeing trading in the ETF
• D)The National Association of Securities Dealers (NASD) that clears the trade
• E)The specialist that records the trade

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Definitions:

Association

A group of people organized for a joint purpose or to carry out a common goal.

Co-owners

Individuals or entities that jointly own a property or business, sharing rights, responsibilities, and profits.

Liquidation

The process of converting assets into cash or other forms of payment to settle debts or obligations of a business.

Partnership

A formal business structure where multiple individuals are involved in managing the enterprise and also share the profits.