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As a Result of Arbitrage, ETFs Tend to Sell for Their

question 48

True/False

As a result of arbitrage, ETFs tend to sell for their net asset value.


Definitions:

Quarterly Dividend

A dividend paid by a company to its shareholders every quarter, representing a portion of the company's earnings.

Capital Gains

The profit earned from the sale of an asset or investment which has increased in value over the holding period.

Shares

Units of ownership in a company or financial asset that represent a portion of the total capital.

Dividend Yield

A company's yearly dividend disbursement compared to its stock price, shown as a financial ratio.

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