The price per share of a closed-end investment fund could be lower than its NAV.

Question

Quizplus · Accepted Answer

The price per share of a closed-end investment fund can trade at a premium or discount to its NAV, which is determined by the supply and demand in the market. If the demand is high, the price per share may increase, resulting in a premium to the NAV. If the demand is low, the price per share may decrease, resulting in a discount to the NAV. Therefore, it is possible for the price per share to be lower than its NAV.

The Price Per Share of a Closed-End Investment Fund Could