A closed-end fund might trade for less than net asset value if

Question

Quizplus · Accepted Answer

A closed-end fund might trade for less than net asset value if it has a poor record of prior performance or is heavily invested in an unpopular industry. Additionally, a new fund trying to attract new investors may also trade for less than its net asset value as there may be a lack of awareness or uncertainty regarding its future performance. Therefore, options A and C are correct.

A Closed-End Fund Might Trade for Less Than Net Asset