Sản phẩm & Rủi roCâu 72 / 398
An investor wants to place a limit order and trade intraday, and to be able to use stop orders. Compared with a traditional open-end mutual fund, which product better meets these needs?
a.A traditional open-end mutual fund, because it prices continuously
b.An ETF, because it trades on an exchange throughout the day and supports limit and stop orders
c.A unit investment trust, because units trade like stocks
d.Neither, because pooled products cannot use limit orders
Giải thích
Because ETFs trade on exchanges throughout the day, investors can use limit orders, stop orders, and trade at intraday prices. Traditional open-end mutual fund shares are priced only once per day at the next calculated NAV (forward pricing), so intraday order types do not apply to them.
Trích dẫn luật: Investment Company Act of 1940Luyện miễn phí toàn bộ 398 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- Shares of a closed-end investment company:
- Which statement correctly distinguishes a closed-end fund from an open-end fund?
- Which of the following is generally TRUE of an exchange-traded fund (ETF)?
- A distinguishing feature of a unit investment trust (UIT) is that it:
- When a unit investment trust reaches its predetermined termination date, what typically happens?
- To qualify for favorable tax treatment as a real estate investment trust (REIT), the entity must distribute to shareholders at least:
Cập nhật gần nhất: · quy trình kiểm tra
Đội Ngũ Biên Tập PrepPass · Đối chiếu với FINRA Securities Industry Essentials (SIE) Exam · Quy trình kiểm tra