A customer has expressed interest in exchange-traded funds (ETFs) and wishes to discuss them with you. You could tell him all of the following EXCEPT:
A) A share of an ETF represents an entire portfolio, or a specific selection, of securities.
B) Real time quotes are available for ETFs.
C) ETFs have a NAV, calculated at the end of the trading day, that serves as the trading price until the next NAV is calculated.
D) Selling short and trading on margin are available transactions with ETFs.
Answer: C) ETFs have a NAV, calculated at the end of the trading day, that serves as the trading price until the next NAV is calculated.