Which of the following statements correctly describe similarities between exchange-traded funds and closed-end investment companies?
I. There are a limited number of outstanding shares.
II. They are traded on registered stock exchanges.
III. They trade at prices that are not dependent upon but close to their net asset value.
IV. Investors pay commissions to purchase and liquidate their positions.
A) I and IV.
B) II and III.
C) II and IV.
D) I and III.
Answer: C) II and IV.