Which of These Is Not a True Statement

question 25

Multiple Choice

Which of these is not a true statement?

• A) ETFs can be purchased through a broker.
• B) ETFs can be purchased on margin.
• C) ETFs can be sold short.
• D) ETFs have lower management expenses than conventional mutual funds.
• E) ETFs can be purchased through a broker, on margin, sold short, and have lower management expenses than conventional mutual funds.

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Definitions:

Initial Public Offering

The first time that the shares of a private company are offered to the public for purchase, often referred to as "going public."

Shares

Units of ownership in a company or financial asset, which entitle the holder to a proportion of the company's profits.

Rights Offering

A method by which a company offers existing shareholders the opportunity to buy additional shares before the public or others.

Rights Offering

A method by which a company raises capital by giving its existing shareholders the right to subscribe to new shares at a discount before they are offered to the public.