CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

Which of the following are characteristics of a closed-end fund?

I. Fixed number of shares
II. Investors can not always buy shares directly from the fund.
III. Investors can not sell shares directly to the fund.
Correct Answer: I, II and III

A closed-end investment fund has a fixed number of shares, and purchasers and sellers of shares must deal directly with each other rather than with the fund. Closed-end funds trade on an exchange or over-the-counter.

User Contributed Comments 5

User Comment
woori easy one! Do not miss!
cong closed-end shares need to be resold or repurchased in secondary markets (such as NASDAQ)
johntan1979 "always" in II is confusing and redundant... should be omitted.
Bududeen The always is important because at first instance, the investor has to get the shares from the funds... just like in the primary market and then trade among themselves in the secondary mkt.
Shaan23 Easy one. I got it wrong. Did not choose II. Tricky at first glance
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