A characteristic of a closed-end fund:

Question

Quizplus · Accepted Answer

A closed-end fund's method of purchase is through the stock exchange or over-the-counter market, distinguishing it from open-end mutual funds, which sell or redeem shares at the net asset value, and exchange-traded funds, which trade on an exchange like a stock. Option A is the characteristic of open-end mutual funds, while option C is incorrect as closed-end funds do deal with shareholders, but not in the same way as open-end funds. Option D is incorrect, as closed-end funds do not always trade at their net asset value.

A Characteristic of a Closed-End Fund