An investment fund that sells a fixed number of shares in the fund to outside investors is called:
A)open-end fund
B)closed-end fund
C)fixed fund
D)fixed number fund

Question

Quizplus · Accepted Answer

A closed-end fund issues a fixed number of shares that are traded on an exchange, and investors can buy or sell these shares on the secondary market. By contrast, an open-end fund allows for the creation of new shares as investors buy into the fund, and the fund will also buy back shares as investors sell them. A fixed fund and fixed number fund are not commonly used terms for investment funds.

An Investment Fund That Sells a Fixed Number of Shares