The Price of an ETF Is Determined Once a Day

question 39

True/False

The price of an ETF is determined once a day when the market closes.

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on the certificate. It is a legal amount per share that represents the minimum stock value.

Market Value

The prevailing cost to purchase or dispose of an asset or service in the market.

No-Par

Refers to stocks issued without a par value; no minimum value is assigned to these shares.

Corporate Charter

A legal document issued by a government, outlining a corporation's rights, privileges, and purpose.