Closed-End Investment Companies

question 71

Multiple Choice

Closed-end investment companies

• A)have a fixed number of shares.
• B)can trade at a price that is greater than, equal to, or less than the NAV.
• C)will trade at a different price as the number of shares of the fund changes.
• D)A and C only.
• E)A and B only.

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Definitions:

Fair Value Accounting

A financial accounting approach where assets and liabilities are recorded and reported at their current market value.

Investments Account

An account on the balance sheet that reports the cost of investments held by an entity, such as stocks, bonds, or real estate.

Balance Sheet

A financial statement that shows the assets, liabilities, and shareholders' equity of a company at a specific point in time, providing a snapshot of a company's financial condition.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.