CFA Practice Question

There are 294 practice questions for this study session.

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!!!
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