The Main Difference Between a Closed-End Fund and an Open-End

question 26

Multiple Choice

The main difference between a closed-end fund and an open-end fund is

• A) the way each is traded after the initial public offering.
• B) there is no significant difference.
• C) the minimum initial investment.
• D) the type of allowable investments.
• E) the way in which each is regulated by the SEC.

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, making them partial owners of the company with rights to a portion of its profits and assets.

NYSE Euronext

A former global financial markets operator and trading facility that merged with IntercontinentalExchange (ICE) to form a leading marketplace for equities.

Acquired

The process of obtaining control of another company by purchasing its stock or assets.

Initial Maturities

The onset period before a bond, note, or other financial instrument reaches its due date for payment.