At Issue, Offering Prices of Open-End Funds Will Often Be

question 47

Multiple Choice

At issue, offering prices of open-end funds will often be

• A)less than NAV due to loads.
• B)greater than NAV due to loads.
• C)less than NAV due to limited demand.
• D)greater than NAV due to excess demand.

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Definitions:

Demand

How much of a good or service people are inclined and have the means to buy, spanning a range of prices, during a designated timeframe.

Equilibrium Price

The price at which the quantity of a good or service supplied is equal to the quantity demanded, leading to market stability where there is no excess supply or demand.

Equilibrium Quantity

The amount of goods or services available and sought after at the balance price.

Scalping

The practice of buying tickets, securities, or commodities for immediate resale at higher prices, often to exploit short-term fluctuations.