How the price of the shares is determined for a closed-end investment company?

Question

Quizplus · Accepted Answer

The price of shares of a closed-end investment company is determined by the supply and demand in the market. It is not necessarily tied to the net asset value (NAV) of the fund, although there can be a correlation. Closed-end funds typically trade on an exchange like a stock, so the price can be influenced by various factors such as investor sentiment, market conditions, and perceived value of the fund's holdings. It is possible for the share price to trade at a premium or discount to the NAV.

How the Price of the Shares Is Determined for a Closed-End