Closed-End Fund Basics

What Is a Closed-End Fund?

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Question

Which of the following is/are true about a closed-end fund?

I. Shares of the fund trade on an exchange.

II. The market price of the fund is determined by supply and demand.

III. It issues shares only infrequently.

Answers

Explanations

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A. B. C. D. E. F. G.

E

Shares of a closed-end fund trade on an exchange like those of any other firm, with the share price determined by the laws of supply and demand. The fund issues new shares only infrequently, when it needs additional capital.