SIE practice questioneasyClosed-End Funds
How are closed-end fund shares typically bought and sold by investors?
- ABy direct subscription from the fund company
- BThrough continuous issuance and redemption by the fund
- COn an exchange at market prices✓ Correct answer
- DVia the mutual fund distributor at NAV
Explanation
Why C — On an exchange at market prices
Closed-end fund shares are typically bought and sold on an exchange at market prices after the initial offering. Continuous issuance and redemption at NAV are open-end mutual fund features.
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