- CFA Exams
- CFA Level I Exam
- Study Session 18. Portfolio Management (1)
- Reading 51. Portfolio Management: An Overview
- Subject 4. Pooled Investments
CFA Practice Question
An investor can liquidate his holdings in a closed-end fund by selling his shares ______.
A. in the secondary market
B. back to the fund at the fund's net asset value
C. back to the fund after paying a redemption fee
Explanation: Closed-end funds raise initial capital by selling shares. However, the funds do not sell or buy back their shares from shareholders. Like the shares of any other company, shares of closed-end funds trade on the secondary markets.
User Contributed Comments 1
| User | Comment |
|---|---|
| kellyyang | key words: Closed-end fund By selling and Secondary market! |