Gordon indicates that he recently purchased shares in an investment fund. The shares were purchased from another investor through his broker. He paid more than the fund's NAV. What type of fund did Gordon most likely purchase?
A) An open-end mutual fund with a front-end load
B) an ETF
C) an ETN
D) a closed-end fund

Question

Quizplus · Accepted Answer

Gordon most likely purchased a closed-end fund, as these are traded on the open market and can be bought at a premium or discount to their NAV, unlike open-end mutual funds which are bought at NAV plus any sales charges.

Gordon Indicates That He Recently Purchased Shares in an Investment