A creation or redemption settled by exchanging securities rather than cash: the authorized participant delivers the basket to create shares and receives securities when it redeems them.
Covered in: ETF Market Structure Explained (book) · How ETFs Actually Trade (book)
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For advisors, investors, and new team members: a jargon-light foundation in creation/redemption, intraday value, and common liquidity myths.
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This material is provided for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security.
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