ETFs Are Priced Only Once a Day by Being Redeemed

question 11

True/False

ETFs are priced only once a day by being redeemed or offered by the fund company at NAV. On the other hand, open-ended funds are traded on an exchange and so are priced continuously throughout the day.

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Definitions:

Management Discussion and Analysis

A section in an annual report where management provides an overview of the previous period's operations, current financial status and future outlook.

Dividends per Share

The amount of money a company pays out to its shareholders for each share they own during a specific period.

Earnings per Share

A financial ratio that divides a company's net profit by the number of its outstanding shares, indicating how much money each share makes.

Price-Earnings Ratio

A valuation metric for a company, calculated as its current share price divided by its per-share earnings.