SIE practice questioneasyClosed-End Funds
Unlike open-end funds, closed-end fund shares are:
- ANot transferable between investors
- BRedeemed directly by the issuer at NAV
- CSold only at NAV plus a sales charge
- DTraded on exchanges at market prices✓ Correct answer
Explanation
Why D — Traded on exchanges at market prices
Closed-end fund shares trade on exchanges at prices determined by supply and demand, not redeemed at NAV (B) or confined to issuer transactions (C, D).
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