Question

The most significant difference between an exchange traded fund and an open end mutual fund is...

The most significant difference between an exchange traded fund and an open end mutual fund is that

a.

The net asset value (NAV) of exchange traded funds is higher than the NAV of open end mutual funds.

b.

An investor can divest himself of his exchang traded fund shares by selling them to another investor, but an investor can only sell his open end mutual fund shares back to the mutual fund

c.

Exchange traded funds do not have to pay no capital gains taxes when they sell their shares at a profit, but investors in mutual funds do.

d.

Exchange traded funds are not regulated by the Securities and Exchange Commission, but open end mutual funds are.

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Answer #1

option b , an investor can divest himself of his exchange traded fund shares by selling them to another investor,but an investor only sell his open end mutual fund shares back to the mutual fund

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