A Fund That Has a Fixed Number of Shares Outstanding

question 11

Multiple Choice

A fund that has a fixed number of shares outstanding and is traded on an exchange is called a(n)

• A)open-end mutual fund.
• B)hybrid fund.
• C)market timing fund.
• D)index fund.
• E)closed-end fund.

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Definitions:

Negative Amortization

A situation in a loan where the monthly payments are not enough to cover the interest costs, causing the loan balance to increase rather than decrease over time.

Commission

A service fee charged by a broker or agent for facilitating transactions, such as in stocks or real estate.

Monthly Interest Charges

The amount of interest that accrues on a loan or debt and is payable on a monthly basis.

Sarbanes-Oxley Act

A United States federal law that set new or expanded requirements for all U.S. public company boards, management, and public accounting firms, aiming to protect investors from fraudulent financial reporting.