CFA Practice Question

There are 546 practice questions for this topic.

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!!!
You need to log in first to add your comment.