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.

---

Definitions:

Unconscious Mind

The part of the mind that is not within thought's reach and stores forgotten or suppressed memories and desires.

Modern Notion

Refers to contemporary views or concepts that are accepted or prevalent in current times, distinguishing them from traditional or outdated beliefs.

Automatic System

A mechanism in cognitive science referring to processes that operate in an unconscious, fast, and often involuntary manner.

Deliberate Process

A cognitive approach involving conscious thinking, analysis, and decision-making.