SIE practice questioneasyClosed-end Funds
Closed-end funds differ from open-end funds because they:
- AOffer breakpoints on sales charges
- BRedeem shares directly at NAV
- CAre always passively managed
- DTypically issue a fixed number of shares that trade on exchanges✓ Correct answer
Explanation
Why D — Typically issue a fixed number of shares that trade on exchanges
Closed-end funds issue a fixed number of shares that trade on exchanges. Open-end funds redeem at NAV, closed-end funds can be actively or passively managed, and breakpoints only apply to open-end funds.
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