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Answer: Investors can purchase ETF shares in the secondary market from a market maker
## Explanation **Option B is correct** because investors can indeed purchase ETF shares in the secondary market from market makers, just like they would trade any other stock on an exchange. **Option A is incorrect** because while ETFs do have an initial public offering, the size is not fixed. The creation/redemption mechanism allows the number of shares to expand or contract based on market demand. **Option C is incorrect** because US market makers must settle their accounts within the standard T+2 settlement period, not up to three days. The creation/redemption process is designed to work within this settlement timeframe.
Author: LeetQuiz Editorial Team
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A
ETF shares come to market via an initial public offering of fixed size
B
Investors can purchase ETF shares in the secondary market from a market maker
C
US market makers are given up to three days to settle their accounts due to the time required to create or borrow ETF shares
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