Which of the Below Statements Is FALSE

question 46

Multiple Choice

Which of the below statements is FALSE?

• A) ETFs do not have ticker symbols.
• B) ETFs can be sold short or bought on margin (i.e., with borrowed money), and it is even possible to trade options on many ETFs.
• C) To assure that the price of the ETF would be very close to the continuously known NAV of the portfolio, an agent could be commissioned to arbitrage between the ETF and the underlying portfolio and keep their values equal.
• D) Rather than dealing directly with the fund company, investors buy ETF shares from another individual investor via an exchange at a price determined by supply and demand for the ETF, not the ETF's underlying NAV as is the case for mutual funds.

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Definitions:

Full Voltage

A term typically referring to the application of full line voltage to a device, ensuring it operates at its intended performance level.

Electrical Supply

Refers to the source and infrastructure involved in delivering electricity from the production point to the consumer.

Electric Motors

Machines that convert electrical energy into mechanical energy, commonly used in various applications from household appliances to industrial machinery.

Rated Frequency

The specific frequency at which an electrical device or piece of equipment is designed to operate most effectively and efficiently.