There Is Often a Difference Between the NAV of a ________

question 47

Multiple Choice

There is often a difference between the NAV of a ________ underlying portfolios and the price of its funds that are bought and sold. This difference is called a ________ when the price is greater than the NAV.

• A) opened-end fund's; discount
• B) mutual fund's; premium
• C) closed-end fund's; premium
• D) mutual fund's; discount

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Definitions:

Tort

A civil wrong that causes someone else to suffer loss or harm, resulting in legal liability for the person who commits the act.

Breach Of Trust

The failure of a trustee to act in accordance with the terms of the trust agreement or in the best interest of the beneficiaries.

Winding Up

The process of liquidating a company's assets and distributing the proceeds to the creditors and shareholders, ultimately leading to the dissolution of the company.

Selling Assets

The process of liquidating company assets for cash or other considerations, often done to meet financial obligations or as part of a strategic business restructuring.