Closed-end mutual fund shares trade on stock exchanges and can sell at a premium or discount to their NAVPS.

Name: Closed-end mutual fund shares trade on stock exchanges and can sell at a premium or discount to their NAVPS.
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Question

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Closed-end mutual fund shares trade like stocks on stock exchanges and their price is determined by market supply and demand. This means that they can sell at a price that is higher (premium) or lower (discount) than their net asset value per share (NAVPS).

Closed-End Mutual Fund Shares Trade on Stock Exchanges and Can