What Are the Differences Between an ETF and a Mutual

question 12

Multiple Choice

What are the differences between an ETF and a mutual fund?

• A)An ETF can be traded like a share of common stock.
• B)An ETF can be purchased on margin or sold short like a share of common stock.
• C)An ETF is more tax-efficient than most mutual funds.
• D)All of the above are correct.
• E)Only A and C are correct.

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Definitions:

Extreme Levels

Highly unusual or exceeding the normal limits in intensity or severity.

Adjudication

A legal process where an arbiter or judge reviews evidence and argumentation to make a decision.

Dispute Resolution

A method or process used to resolve conflicts or disputes between parties.

Mutual Stake

The concept that parties involved in a situation or negotiation have shared interests or investments in the outcome.