For example, a market maker can buy a handful…

For example, a market maker can buy a handful of big stocks, fill it out with a few smaller ones, based on the requirements of the creation desk at the bank, and then exchange that basket for shares of an ETF at the NAV price. They can also do the opposite, exchanging the ETF for a handful of those stocks in the ETF.

— from True North (Ethics, Integrity, Truth, Values)

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