An Exchange-Traded Fund Tends to Sell for a Large Discount

question 42

True/False

An exchange-traded fund tends to sell for a large discount from its net asset value.​

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Definitions:

Net Income

The amount of money a company earns after deducting all its expenses, taxes, and costs from its total revenues, also known as net earnings or net profit.

Adjust Salaries

The process of modifying the amount of wages or salaries paid to employees, which may be done for reasons such as performance appraisals or inflation adjustments.

Liabilities

Liabilities are financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits.

Assets

Assets belonging to a company or person, anticipated to yield benefits in the future.