You recently purchased a fund at a price of $39.97 per share. The NAV at the time of purchase was $40.67. You must have purchased a(n)________ fund.

Question

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The fact that the purchase price ($39.97) is lower than the NAV ($40.67) indicates that the fund is a closed-end fund. In contrast, open-end funds are bought and sold at the NAV with no variation, while the trading price of closed-end funds may be at a premium or discount to the NAV.

You Recently Purchased a Fund at a Price of $39