If You Purchase Shares in a Closed-End Fund at the Initial

question 71

Multiple Choice

If you purchase shares in a closed-end fund at the initial offer price, you should expect to:

• A)earn an abnormally high rate of return the first year.
• B)immediately see a decrease in the value of your investment.
• C)receive offers to purchase your shares at a premium prior to the official first day of trading.
• D)earn tax-advantaged income.
• E)realize a capital gain if you sell your shares as soon as trading in the shares commences.

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Definitions:

Mass Production

A manufacturing method that produces large quantities of standardized products, often using assembly lines or automated technology, to achieve economies of scale.

Operations Quality

The measure of excellence and efficiency within an organization's production processes and workflows, aimed at meeting or exceeding customer expectations.

Lean Production

A manufacturing methodology that focuses on minimising waste within manufacturing systems while simultaneously maximizing productivity.

Flexible Manufacturing

a production system designed to easily adapt to changes in the type and quantity of the product being manufactured.