Explain what exchange-traded funds are and how they are tracked
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Answer: As with an index mutual fund, an exchange-traded fund (ETF) is a bundle of stocks (or bonds) that are in an index that tracks the overall movement of a market; unlike a mutual fund, however, an ETF can be traded like a stock. Each share of an ETF rises and falls as market prices change continuously for the market being tracked. Because they are traded on stock exchanges (hence, exchange traded), ETFs can be bought and sold-priced continuously-any time throughout the day.
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Secondary data gathers information firsthand
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A key advantage of employee stock ownership plans is that the company gets a tax advantage equal to the fair market value of the shares that are transferred to the trustee and can also claim an income tax deduction for dividends paid on ESOP-owned stock
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