Which of the Following Is Not a Characteristic of a Closed-End

question 93

Multiple Choice

Which of the following is not a characteristic of a closed-end mutual fund?

• A) Once the fund closes the shares of the fund trade on the stock market just like a stock.
• B) The shares may sell above NAV on the secondary market.
• C) Investors can easily sell their share back to the fund on a daily basis at NAV.
• D) The shares may sell below NAV on the secondary market.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) aimed at providing a global framework for financial reporting.

Classified Balance Sheet

A financial statement that organizes assets, liabilities, and equity into subcategories for detailed analysis.

IFRS

International Financial Reporting Standards, a set of accounting rules globally recognized for preparing financial statements.

GAAP

Generally Accepted Accounting Principles; a set of accounting standards, principles, and procedures that companies must follow when compiling their financial statements in the U.S.