The shares of a closed-end fund with market value assets of $200 million and two million shares outstanding will always trade at a market value of $100 per share.

Question

Quizplus · Accepted Answer

The market value per share of a closed-end fund is determined by the supply and demand of investors in the market, and can vary from the net asset value (NAV) per share of the fund. The market value per share can be above or below the NAV per share, depending on factors such as investor sentiment, interest rates, and the performance of the underlying assets in the fund.

The Shares of a Closed-End Fund with Market Value Assets