Etfs
Which type of fund trades on an exchange like a stock?
ETFs = trade on exchange, real-time pricing. Mutual funds = end of day NAV.
Complete Analysis & Legal Rationale
ETFs trade on exchanges throughout the day at market prices, just like stocks. They can be bought/sold anytime during market hours, unlike mutual funds.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Open-end funds are bought/sold through the fund company at NAV, not on exchanges.
UITs are redeemed with the trust, not traded on exchanges.
Matches the verified teaching point in the explanation.
Money market funds are bought/sold at stable NAV through the fund company.
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.