Answer: are the only investors who can create or redeem new shares of an ETF.

## Explanation **Option C is correct** because authorized participants (APs) are indeed the only entities that can create or redeem new shares of an ETF directly with the fund sponsor. This is a key feature of the ETF structure that distinguishes it from mutual funds. **Option A is incorrect** because the minimum size of creation baskets is determined by the ETF sponsor, not by the APs. **Option B is incorrect** because the list of required in-kind securities for each ETF is published by the ETF sponsor or fund manager, not by the authorized participants.

Author: LeetQuiz Editorial Team