Advertisements Describing Purchase/Sale of Creation Units Sample Clauses
The "Advertisements Describing Purchase/Sale of Creation Units" clause regulates how advertisements can present information about the buying and selling of creation units, which are large blocks of shares typically used in exchange-traded funds (ETFs). This clause ensures that any promotional materials or advertisements accurately describe the process, requirements, and limitations involved in purchasing or redeeming creation units, such as eligibility criteria or minimum transaction sizes. Its core function is to prevent misleading or incomplete advertising, thereby protecting investors and maintaining transparency in the marketing of financial products.
Advertisements Describing Purchase/Sale of Creation Units. The Participant understands that: (i) neither the Trusts nor any Fund may be advertised or marketed as an “open-end investment company” or a “mutual fund,” (ii) all Marketing Materials will prominently disclose that the Shares are not individually redeemable, and (iii) the Prospectus and all Marketing Materials that address redemptions of Shares will prominently disclose that Shares are not individually redeemable and that the owners of Shares may acquire Shares and tender Shares for redemption to the applicable Trust in Creation Unit aggregations only.
Advertisements Describing Purchase/Sale of Creation Units. The Participant understands that neither the Trust nor any Fund will be advertised or marketed as an open-end investment company or a mutual fund. The Prospectus will prominently disclose that Shares are not individually redeemable and will disclose that the owners of Shares may acquire Shares from a Fund and tender those Shares for redemption to a Fund only in Creation Units. The Participant understands that any advertising material that describes the purchase or sale of Creation Units or refers to redeemability will prominently disclose that Shares are not individually redeemable and that owners of Shares may acquire Shares from a Fund and tender those Shares for redemption to a Fund in Creation Units only.