NO.PZ2023040601000127
问题如下：
Sorrill begins the meeting by describing how ETFs are subject to the same regulations as mutual funds and noting that ETFs trade intra-day, similar to public stocks. Hart adds that ETF authorized participants conduct trades in the secondary market to eliminate the arbitrage gap and conduct trades in the primary market to both create and redeem ETF shares.
Is Hart’s statement about ETF authorized participants likely correct?
选项：
A.Yes
No, regarding trades in the primary markets
No, regarding trades in the secondary markets
解释：
Hart’s statement about authorized participants is not correct because of trades in the secondary market. ETF secondary market trades are transactions between buyers and sellers of existing ETF shares. No new ETF shares are created by trades in the secondary market. ETF authorized participants create and redeem ETF shares in the primary market.
Hart adds that ETF authorized participants conduct trades in the secondary market to eliminate the arbitrage gap and conduct trades in the primary market to both create and redeem ETF shares.
In this sentence, no mention ETF shares creation is in the secondary market , why it is incorrect?
