OpenAI | Funds That Continue to Sell and Repurchase Shares

Explanation

Open-end investment funds or mutual funds continue to sell and repurchase shares after their initial public offering. The total number of outstanding fund shares can change with time.

The correct answer is B. Open-end investment funds.

Open-end investment funds, also known as mutual funds, are funds that continuously sell and repurchase shares after their initial public offerings (IPOs). These funds are open to new investors, and existing investors have the option to buy or sell shares on any business day at the fund's net asset value (NAV).

Here's a more detailed explanation of the other answer choices:

A. Unrestricted public funds: This term is not commonly used in the context of investment funds. It does not specifically refer to funds that continue to sell and repurchase shares after their IPOs. Therefore, it is not the correct answer in this case.

B. Open-end investment funds: As mentioned earlier, open-end investment funds continuously sell and repurchase shares after their IPOs. They are open to new investors, and existing investors can buy or sell shares at the NAV. This type of fund does not have a fixed number of shares and can issue new shares to meet investor demand.

C. Closed-end investment funds: Closed-end investment funds are different from open-end funds. These funds have a fixed number of shares that are typically issued through an IPO. After the IPO, the shares are traded on stock exchanges like regular stocks. Unlike open-end funds, closed-end funds do not continuously sell and repurchase shares. Instead, investors can buy or sell shares on the stock exchange where the fund is listed, and the price is determined by supply and demand in the market.

D. No-load closed-end funds: This answer choice combines the concepts of "no-load" and "closed-end funds." "No-load" refers to funds that do not charge sales commissions or loads when investors buy or sell shares. However, the term "no-load" is not directly related to the concept of funds continuing to sell and repurchase shares after their IPOs. Additionally, as explained earlier, closed-end funds do not continuously sell and repurchase shares, so this answer choice is not accurate.

In summary, the correct answer is B. Open-end investment funds, as they are the funds that continue to sell and repurchase shares after their initial public offerings.