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Commerce · Q916

Financial Management

Graduate and Post Graduate · Commerce · question 916

Q916

Mutual fund allows investors to sale out their share during any normal trading hours is classified as

A.
exchange traded fund
Answer
B.
management expense
C.
money trade fund
D.
capital trade fund

Answer: Option A

Solution

Answer: Option A
Solution:
Mutual fund allows investors to sale out their share during any normal trading hours is classified as exchange traded fund. Exchange Traded Funds (ETFs) are mutual funds listed and traded on stock exchanges like shares. Index ETFs are created by institutional investors swapping shares in an index basket, for units in the fund.