Closed-end investment companies

Question

Quizplus · Accepted Answer

Closed-end investment companies have a fixed number of shares, but unlike open-end funds, their shares can trade at a price that is greater than, equal to, or less than the Net Asset Value (NAV) of the fund. The price of the shares is determined by supply and demand in the market, and it can be impacted by factors such as investor sentiment, interest rates, economic conditions, and the performance of the underlying assets held by the fund. However, as the number of shares of the fund does not change, the price will not be affected by changes in the fund's assets or liabilities.

Closed-End Investment Companies