A major difference between a closed-end investment company and an open-end investment company is that:
A) closed-end investment companies are generally much riskier.
B) their security portfolios are substantially different.
C) closed-end investment companies are passive investments and open-ends are not.
D) the capitalization of closed-end companies is more fixed.

Question

Quizplus · Accepted Answer

Closed-end investment companies have a fixed number of shares that are traded on the stock exchange, whereas open-end investment companies, like mutual funds, continuously issue and redeem shares based on investor demand.

A Major Difference Between a Closed-End Investment Company and an Open-End