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

question 43

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.
• E) less than or greater than NAV with no apparent pattern.

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Definitions:

Preferred Stock

A class of ownership in a corporation with a fixed dividend that has priority over common stock dividends but typically does not have voting rights.

Par Value

The nominal or face value of a bond, share, or coupon as stated by the issuer.

Market Price

The up-to-the-minute market price for assets or services open for buy or sell transactions.

Dividends

Funds distributed by a company to its shareholders from its profits.