CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

An open-end mutual fund ______

I. offers shares to the public through the fund distributor.
II. fluctuates in the number of shares outstanding as shares are purchased and redeemed.
III. will redeem existing shares on demand.
Correct Answer: I, II and III

Open-end funds are unique in that the number of shares outstanding is not fixed. The fund employs a distribution company to handle ongoing sales of the fund's shares and will make additional shares available to both new and existing shareholders. Open-end funds also stand ready to redeem shares of the fund on demand at current market value.

User Contributed Comments 4

User Comment
itconcepts Calculating diluted eps must be a nightmare
tschakawaka @itconcepts:
no, i just did it some time ago - i am auditing funds
jonan203 man, i don't even want to think about the book keeping involved.
joeclark Just have the NAV at the end of the period
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