SIE practice questionmediumClosed-end Funds - Share Issuance
After its initial public offering (IPO), a closed-end fund:
- AGuarantees redemption at NAV
- BIssues and redeems shares daily
- CSells shares at NAV through distributors
- DTrades its shares in the secondary market✓ Correct answer
Explanation
Why D — Trades its shares in the secondary market
Closed-end fund shares are bought and sold on exchanges post-IPO. They do not issue or redeem shares daily (B, D), nor sell at NAV through distributors (C).
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