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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