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NEW QUESTION: 1
A closed-end investment company
A. continues to sell and repurchase shares after their initial public offerings. It sells shares at the net asset value with or without sales charges, and repurchases shares at the net asset value plus a redemption fee.
B. is a type of mutual fund. Most closed-end mutual funds continue to sell and repurchase shares after their initial public offerings. They sell shares at the net asset value with or without sales charges, and repurchase shares at the net asset value with or without redemption fees.
C. is a type of mutual fund. It operates like any other public firm; its stock trades on the secondary market, and the price of the stock is determined by supply and demand. Most closed-end investment companies do not offer more shares or repurchase shares after the initial public offerings.
D. operates like any other public firm; its stock trades on the secondary market, and the price of the stock is determined by supply and demand. Most closed-end investment companies do not offer more shares or repurchase shares after the initial public offerings.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The only way to invest in a typical closed-end investment company after its initial public offering is to purchase its shares on the secondary market. Many such companies trade their shares on the NYSE.
Over the long-run, shares of closed-end investment companies tend to trade at a 5 to 20% discount to their net asset value (NAV).