When you are buying shares of an exchange traded fund (ETF) you purchase your shares at which price? OA. Average between the Bid and Ask Price B. NAV (Net Asset Value) C. Bid Price D. Ask Price OE. More information is needed to answer this question
When you are buying shares of an exchange traded fund (ETF) you purchase your shares at which price? OA. Average between the Bid and Ask Price B. NAV (Net Asset Value) C. Bid Price D. Ask Price OE. More information is needed to answer this question
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:When you are buying shares of an exchange traded fund (ETF) you purchase your shares at which price?
***
OA. Average between the Bid and Ask Price
OB. NAV (Net Asset Value)
OC. Bid Price
O D. Ask Price
OE. More information is needed to answer this question
Expert Solution
Step 1
Solution:
Exchange Traded Funds are those funds which are traded on recognized stock exchanges.
Trading on stock exchange happens through demand and supply i.e. trade will occur only when at same given point of time, buyer and seller both are ready to buy and sell the asset respectively at a decided price.
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