SIE practice questionhardMutual Funds
An investor wants intraday pricing and trading privileges not allowed by mutual funds. Which product suits this need?
- AUnit investment trust (UIT)
- BOpen-end mutual fund
- CClosed-end fund✓ Correct answer
- DRedeemable security
Explanation
Why C — Closed-end fund
Closed-end funds trade like stocks intraday. Mutual funds (open-end) and UITs do not allow intraday trades and must be bought/redeemed at NAV.
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