Because Exchange-Traded Funds (ETFs)are Passively Managed,they Are a Good Choice

question 56

True/False

Because exchange-traded funds (ETFs)are passively managed,they are a good choice for an investor who is looking for tax efficiency.

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Definitions:

Preferred Stock

A class of ownership in a corporation with a fixed dividend payout, which takes precedence over common stock dividends.

Consolidated Net Income

The total net income of a parent company and its subsidiaries, after intercompany transactions have been eliminated.

Dividends

When a corporation distributes its profits to the shareholders, often as profit payments.

Operating Activities

Activities that constitute the primary or main activities of an entity, including cash flows from producing and delivering goods and providing services.