Exchange-Traded Funds (ETF) Are Depository Receipts That Give Investors a Pro

question 25

True/False

Exchange-Traded Funds (ETF) are depository receipts that give investors a pro rata claim on the capital gains and cash flows of securities held by financial institutions.

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Definitions:

Misrepresentation

The act of providing false or misleading statements or impressions, especially in contracts, which can lead to legal consequences.

Statement Of Fact

A declaration or assertion made about a situation or circumstance, often in a legal or official context.

Parol Evidence Rule

A legal principle preventing the introduction of oral or extrinsic evidence to contradict or vary the terms of a written contract.

Misrepresentation

A false statement of fact made by one party to another, which may render a contract voidable.