- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 61. Portfolio Management: An Overview
- Subject 5. Pooled Investments
CFA Practice Question
Closed-end mutual funds are "closed" in the sense that ______
A. no new shareholders are allowed to own shares.
B. a fixed number of shares is outstanding.
C. no new purchases of shares are allowed by existing shareholders.
Explanation: Closed-end funds have a fixed number of shares outstanding. After the initial offering, shares trade on exchanges and in over-the-counter markets just as stocks do.
User Contributed Comments 1
| User | Comment |
|---|---|
| samco | So new shareholders can invest but new purchases are not allowed from existing shareholders. The number of shares is fixed!!! |