An investment company that issues shares to anyone wishing to buy and redeems shares from anyone wishing to sell is called a(n) ___________ fund.

Question

Quizplus · Accepted Answer

An open-end fund is a mutual fund that issues and redeems shares based on demand from investors. This means that it continuously issues new shares and buys back existing shares, making it easy for investors to enter and exit the fund. Closed-end funds, on the other hand, issue a fixed number of shares and trade on an exchange, while exchange-traded funds (ETFs) are similar to mutual funds but trade like individual stocks on an exchange. Stock mutual funds are a type of open-end fund that invests in stocks. Market funds are not a common type of investment fund.

An Investment Company That Issues Shares to Anyone Wishing to Buy