Closed-end investment companies
1. have a fixed capital structure
2. issue new stock whenever an individual buys shares
3. may sell for a premium over net asset value
4. must sell for their net asset value

Question

Quizplus · Accepted Answer

1. Closed-end investment companies have a fixed capital structure, meaning they issue a fixed number of shares at inception, which do not change.3. These shares may trade on the open market for a price that is either above (a premium) or below (a discount) their net asset value (NAV), depending on supply and demand dynamics.

Closed-End Investment Companies 1. Have a Fixed Capital Structure