There Are Some Investment Companies, Known as Exchange-Traded Funds or ETFS

question 191

Multiple Choice

There are some investment companies, known as exchange-traded funds or ETFS, which are legally classified as open-end companies or UITs. EFTs differ from traditional open-end companies and UITs because:

• A) Pursuant to SEC exemptive orders
• B) Shares issued by ETFs Traded on a secondary market
• C) Are lonely redeem able in very large blocks (Blocks of 50,000 shares for example)
• D) All of these

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Definitions:

Principal

The main party to a transaction, obligation, or financial instrument, in contrast to an agent or intermediary.

Third Party

An individual or group besides the two primarily involved in a transaction or legal case.

Undisclosed Principal

A party in a contract whose identity is not revealed to the third party by the agent, allowing the principal to conduct transactions anonymously.

Limited Partners

Investors in a partnership who are not involved in the day-to-day management of the business and whose liability is limited to the amount they have invested.