Closed-end mutual funds companies always buy their shares back from investors at NAV.

Question

Quizplus · Accepted Answer

Closed-end mutual funds do not always buy their shares back from investors at NAV. Unlike open-end mutual funds, these funds do not continuously issue new shares or redeem existing ones at their net asset value (NAV). The price of closed-end fund shares is determined by supply and demand on the stock market and may trade above or below the NAV. Therefore, investors may have to sell their shares on the open market, which could result in a higher or lower price than the NAV.

Closed-End Mutual Funds Companies Always Buy Their Shares Back from Investors