How Is an ETF Similar to a Closed-End Fund

question 29

Multiple Choice

How is an ETF similar to a closed-end fund?

• A) Shares are traded on a securities exchange or in the over-the-counter market.
• B) An investor can purchase as little as one share of a fund.
• C) Prices are determined by supply and demand and the value of stocks and other investments contained in the portfolio.
• D) Prices are determined by investor expectations.
• E) All of these are correct.

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Definitions:

Environmental Factors

External elements including economic, political, social, technological, and ecological influences that can affect a business or its operations.

Financial Factors

Aspects related to money, finances, or fiscal conditions that influence decision-making or performance.

Internal Factors

Elements within an organization that influence its operation, such as company culture, employees, and internal processes.

Triggering Event

A triggering event is a specific situation or occurrence that initiates a sequence of actions, often leading to a change or response in a system or process.