Once all the shares are originally sold, an investor must purchase shares in a(n) ____ fund from some other investor who is willing to sell them.

Question

Quizplus · Accepted Answer

Only closed-end funds have a limited number of shares, so once they are sold, investors must purchase shares from other investors on the secondary market. Open-end funds continuously issue and redeem shares, so investors can generally buy and sell directly with the fund. No-load and load refer to fees charged by a fund and do not affect how shares are bought and sold. Municipal refers to the type of bond held by the fund and does not indicate how shares are bought and sold.

Once All the Shares Are Originally Sold, an Investor Must