The Main Difference Between a Closed-End Fund and an Open-End

question 103

Multiple Choice

The main difference between a closed-end fund and an open-end fund is

• A) The way each is traded after the initial public offering.
• B) There is no significant difference.
• C) The minimum initial investment.
• D) The type of allowable investments.
• E) The way in which each is regulated by the SEC.

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Definitions:

Payments

Transactions of money or its equivalent from one individual, business, or entity to another as a form of exchange or settlement.

Use Of Money

The concept referring to the opportunity cost of holding money without earning interest, or the benefits foregone by not investing or spending it.

Investment

The allocation of resources, usually financial, in the expectation of a future return. This can include investing in stocks, bonds, real estate, or other financial assets.

Payments For Capital

The returns or disbursements made to fund providers in a business, typically in the form of interest or dividends.