SIE practice questionmediumClosed-End Funds
The price that an investor pays for a closed-end fund share is usually:
- AUpdated only once per day
- BFixed by the fund at NAV
- CBased on current market supply and demand✓ Correct answer
- DInflated by a mandatory front-end load
Explanation
Why C — Based on current market supply and demand
A is correct; closed-end fund shares are bought and sold like stocks, with prices set by market forces. B is not true after IPO. C is incorrect—trading is continuous. D is not a typical closed-end fund feature.
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