A mutual fund in which shares are issued only when the fund is organized is called a(n) ____________ fund.

Question

Quizplus · Accepted Answer

A mutual fund in which shares are issued only when the fund is organized is called a closed-end fund. This type of fund has a fixed number of shares that are traded on an exchange, unlike an open-end fund that issues new shares to meet demand. Closed-end funds often trade at a discount or premium to their net asset value (NAV), which can provide opportunities for investors. Load and no-load refer to the fees charged when buying or selling shares, and convertible refers to a type of bond that can be converted into stock.

A Mutual Fund in Which Shares Are Issued Only When