Which of the Following Is an Advantage of ETFs Over

question 148

Multiple Choice

Which of the following is an advantage of ETFs over mutual funds?

• A) ETFs can be traded throughout the day like a stock.
• B) ETFs have low operating expenses.
• C) ETFs do not require high initial investments.
• D) All of the above.

---

Definitions:

Equity

The value of an owner’s interest in a company, represented by the difference between the company's assets and liabilities.

Dividends

Payments made by a corporation to its shareholder members from the profits or reserves available for distribution, reflecting a share in the company's earnings.

Profit/(Loss)

The financial result of business operations, calculated as revenues minus expenses. A positive figure indicates profit, while a negative figure indicates loss.

General Reserve

Funds set aside out of profits by a company to strengthen the financial position and to meet future unknown liabilities or losses.