SIE practice questionmediumClosed-End Funds
How does the number of outstanding shares in a closed-end fund generally change over time?
- AIt decreases when investors redeem shares.
- BIt increases as new investors enter the fund.
- CIt remains fixed after the initial public offering (IPO).✓ Correct answer
- DIt fluctuates based on daily NAV changes.
Explanation
Why C — It remains fixed after the initial public offering (IPO).
Closed-end funds issue a fixed number of shares at IPO; share count does not change with market activity or NAV fluctuations.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Investment Companies & Packaged Products questions