Sentences with phrase «underlying share prices rising»

Not exact matches

When rising demand for the shares causes them to trade at a higher price (i.e., at a premium), the Authorized Participant (AP) may find it profitable to create shares by buying the underlying securities, exchanging them for ETF shares, and then selling those shares into the market.

If many investors want to buy an ETF, for instance, the ETF's share price might rise above the value of its underlying securities.