Which of the Following Is Correct for a Closed-End Fund

question 15

Multiple Choice

Which of the following is correct for a closed-end fund?

• A) It is not traded on a securities exchange.
• B) The price of its shares is determined by supply and demand, by the value of stocks in the portfolio, and by investor expectations.
• C) It is not actively managed by professional fund managers.
• D) Investors are free to buy and sell shares at the net asset value.
• E) Its load cannot exceed 2%.

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Definitions:

Statement of Retained Earnings

A financial document outlining the changes in retained earnings over a specific period, including net income and dividends paid.

Functional Currency

The foremost form of currency in the principal economic zone in which a corporation is active, reported in its financial accounts.

Dividends

Payments made by a corporation to its shareholder members, usually as a distribution of profits.

Exchange Rates

The price at which one currency can be exchanged for another, influencing international trade and economics.