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).
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
- A unique feature of exchange-traded funds (ETFs) compared to mutual funds is that ETFs:
- Rights of Accumulation (ROA) in mutual funds allow investors to:
- All of the following are characteristics of unit investment trusts (UITs) EXCEPT:
- An investor wants to qualify for a mutual fund breakpoint by signing a Letter of Intent (LOI). Which is TRUE?