Which of the Following Statements Is INCORRECT About Exchange-Traded Funds

question 1

Multiple Choice

Which of the following statements is INCORRECT about exchange-traded funds (ETFs) ?

• A) ETFs are securities giving the holder fractional ownership rights over a basket of securities.
• B) ETFs trade on exchanges continuously during trading hours.
• C) ETF trades require brokerage commissions.
• D) ETF shares cannot be shorted.
• E) Arbitrage helps to ensure that an ETF's price will not move too far from its net asset value.

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