________ have a fixed supply of shares which often trade at a discount from the market value of assets held,but which make up the majority of investment funds,are more liquid.

Question

Quizplus · Accepted Answer

Closed-end funds have a fixed supply of shares and are traded on an exchange, which often leads to them trading at a discount from the market value of assets held. On the other hand, open-end funds have a variable supply of shares and are redeemed directly with the fund at their net asset value. Closed-end funds are therefore more liquid as they can be bought and sold on an exchange throughout the trading day. Bond and stock funds can be either open-end or closed-end, so options A and B are not accurate.

________ Have a Fixed Supply of Shares Which Often Trade