Series 7 - General Securities Representative Exam
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Winthrop Duke is long a commodity ETF. If demand for commodities overall decreases while supply increases, the ETF will MOST LIKELY
Increase in Value
A
Decline in Value
B
Declare a Reverse Stock Split
C
Cease to Pay Dividends
D
Explanations
In this example, if the demand fell and supply rises, the price of the fund tracking the underlying commodities would most likely decline