ETFs

THIS CONFUSES ME MORE : ( http://en.wikipedia.org/wiki/Exchange-traded_fund

daj224 Wrote: ------------------------------------------------------- > THIS CONFUSES ME MORE : ( > > http://en.wikipedia.org/wiki/Exchange-traded_fund From wiki: In the United States, most ETFs are structured as open-end management investment companies (the same structure used by mutual funds and money market funds), although a few ETFs, including some of the largest ones, are structured as unit investment trusts. ETFs structured as open-end funds have greater flexibility in constructing a portfolio and are not prohibited from participating in securities lending programs or from using futures and options in achieving their investment objectives.[2] Under existing regulations, a new ETF must receive an order from the Securities and Exchange Commission, or SEC, giving it relief from provisions of the Investment Company Act of 1940 that would not otherwise allow the ETF structure. In 2008, however, the SEC proposed rules that would allow the creation of ETFs without the need for exemptive orders. Under the SEC proposal, an ETF would be defined as a registered open-end management investment company that: Issues (or redeems) creation units in exchange for the deposit (or delivery) of basket assets the current value of which is disseminated on a per share basis by a national securities exchange at regular intervals during the trading day; Identifies itself as an ETF in any sales literature; Issues shares that are approved for listing and trading on a securities exchange; Discloses each business day on its publicly available web site the prior business day’s net asset value and closing market price of the fund’s shares, and the premium or discount of the closing market price against the net asset value of the fund’s shares as a percentage of net asset value; and Either is an index fund, or discloses each business day on its publicly available web site the identities and weighting of the component securities and other assets held by the fund.[1] Reed all the wiki information…sometime the light is at the end of the tunnel :slight_smile:

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daj224 Wrote: ------------------------------------------------------- > < light is at the end of the tunnel :-)? > > > so OPEN right? Yep

Schweser says ETFs are hybrids of close ended and open ended. FREAKING MORONS!!! on a question like this, we’d definitely saying to ourself, the correct choice is not even listed. HYBRID!!!

pepp Wrote: ------------------------------------------------------- > Schweser says ETFs are hybrids of close ended and > open ended. > FREAKING MORONS!!! > > on a question like this, we’d definitely saying to > ourself, the correct choice is not even listed. > HYBRID!!! and wiki says it is like a mutual fund and index fund! Going with C b/c Strangedays said so