When a mutual fund company issues mutual fund shares that it will buy back at a price that reflects the underlying value of the financial securities owned by the fund, this kind of mutual fund is called a(n) ________ mutual fund.
A) liquid
B) open -end
C) closed -end
D) stock and bond

Question

Quizplus · Accepted Answer

Open-end mutual funds issue shares that can be bought back by the fund at the net asset value (NAV), which reflects the underlying value of the securities in the fund. This allows investors to enter and exit the fund at the current NAV, unlike closed-end funds, which have a fixed number of shares traded on exchanges.

When a Mutual Fund Company Issues Mutual Fund Shares That