Please mark the only INCORRECT statement about ETFs a. Unlike mutual funds (whose NAVs are quoted at closing of the market), ETF shares are continuously quoted and trading during exchange hours. b. ETFs have a safe harbor from the SEC which makes them exempt from the Securities Act of 1940 (you dont have to register the placement before distributing a new ETF to the public) c. Investors can buy ETFs on margin, short ETFs and trade options using ETFs as the underlying asset d. In general, ETFs are more tax efficient for the investor (by limiting capital gains) than mutual funds