A Characteristic of a Closed-End Fund

question 65

Multiple Choice

A characteristic of a closed-end fund:

• A)Stands ready at all times to sell the investor new shares or buy back the old ones
• B)Is that the method of purchase is the stock exchange or over-counter-market
• C)Is that the closed-end fund does not deal with shareholders
• D)It trades shares at the Net Asset Value

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Definitions:

Selling Price

The amount of money charged for a product or service, determining the revenue earned from sales.

Sunk Cost

Costs that have already been incurred and cannot be recovered, which should not factor into future business decisions.

Future Decisions

Choices or judgements that will be made in an upcoming period, often based on past and present information and forecasts.

Overhead Allocation

The process of spreading out fixed costs, such as salaries and utilities, across different departments or production activities within a company.