Which of the Following Statements About Exchange-Traded Notes (ETNs) Is

question 88

Multiple Choice

Which of the following statements about exchange-traded notes (ETNs) is true?

• A) ETNs are more similar to mutual funds than to exchange-traded funds (ETFs).
• B) ETNs are backed only by the issuer of the creditor.
• C) ETNs have no maturity dates.
• D) ETNs cannot be sold short.
• E) ETNs can be bought or sold only at the end of the day.

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Definitions:

Operating Agreement

An agreement in which the members of a limited liability company set forth the details of how the business will be managed and operated.

Limited Liability Company

A company organization style that merges the protective limited liability of corporations with the advantageous pass-through taxation of sole proprietorships or partnerships.

State Law

consists of the laws and regulations enacted by the legislative bodies of individual states.

Passed Through

A term often used in finance and taxation to describe income, losses, or tax benefits transferred from one entity to another, such as in a pass-through entity.