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:

Truth in Lending Act

A federal law designed to protect consumers in their dealings with lenders and creditors by requiring clear disclosure of loan terms and costs.

Revolving Credit

A credit agreement that allows a borrower to withdraw, repay, and redraw loans repeatedly up to a certain credit limit.

Magnuson-Moss Act

A federal law enacted to protect consumers from deceptive warranty practices, improving the enforceability of warranties on consumer products.

Injunctive Relief

A court order requiring a party to do or to refrain from doing specific acts.