Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 2 terms
An individual investing their own money, as distinct from institutional, proprietary and promoter participants.
Small individually and very large collectively. The genuine edge is a long horizon, no redemption pressure and the freedom to hold cash — never speed or information.
A firm appointed by a fund house and permitted to create and redeem an exchange-traded fund’s units in creation-unit blocks against the underlying basket.
The only party who can close a premium or a discount by making or unmaking units. Retail investors deal only in the secondary market, which is why the link between price and basket is a trade somebody has to want to do rather than a rule.