How ETF Shares Are Created and Redeemed

The video explores the origins and development of ETFs, starting with the SEC's response to the 1987 Black Monday crash. It details the SEC's initial concept to mitigate futures market risks and the American Stock Exchange's role in evolving this idea. The video also covers the regulatory challenges faced during the approval process and the eventual market adoption of ETFs, highlighting the SPY's initial struggles and eventual success in the 1990s.

What was the initial purpose of the ETF as suggested by the SEC?

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How did the American Stock Exchange contribute to the development of ETFs?

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What challenges did the SEC face in approving the ETF?

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What was the significance of the 40 Act in relation to ETFs?

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Describe the marketing strategies that helped promote the ETF in the 90s.

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