What Is the Primary Disadvantage of an ETF

question 45

Multiple Choice

What is the primary disadvantage of an ETF?

• A) ETFs tend to have lower management fees than comparable index mutual bonds.
• B) ETFs usually have no minimum investment amount.
• C) Investors have to pay a broker commission each time they buy or sell shares.
• D) None of the above are disadvantages of an ETF.

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Definitions:

B.F. Skinner

An American psychologist best known for his work in behaviorism and the development of the theory of operant conditioning.

Human Behavior

The array of every physical action and observable emotion associated with individuals, as well as the human race as a whole.

External Influences

Factors outside an individual that affect their behavior, decisions, and attitudes, such as societal norms or environmental conditions.

Negative Punishment

A behavior modification method that involves removing a desirable stimulus to decrease the probability of an undesired behavior occurring.