To be effective, a price floor must be above the market price. As, in this case, the legal minimum price is below the equilibrium price, it will have no effect on the market.

Interest expense incurred on funds borrowed to acquire municipal bonds is not a tax-deductible item and therefore would never be recognized for tax purposes. It is a permanent difference, and its tax consequences should not be recognized.

An ETF is a diversified open-end fund designed to follow the broad market or a sector. Its shares are traded publicly at prices close to its NAV.

It will overstate profitability because of the inappropriate deferral of cost recognition.