Most mutual funds are structured in two ways.The most common structure is a(n)________ fund,from which shares can be redeemed at any time at a price that is tied to the asset value of the fund.A(n)________ fund has a fixed number of nonredeemable shares that are traded in the over-the-counter market.

Question

Quizplus · Accepted Answer

Open-end funds are the most common type of mutual funds, and they allow investors to buy and sell shares at any time at the current net asset value (NAV) price. Closed-end funds, on the other hand, issue a fixed number of shares that are traded on stock exchanges like individual stocks and do not allow investors to redeem shares directly with the fund company. Therefore, the correct answer is B.

Most Mutual Funds Are Structured in Two Ways