Closed-end funds are required to provide a prospectus to all new shareholders as long as the fund is trading at a premium.

Name: Closed-end funds are required to provide a prospectus to all new shareholders as long as the fund is trading at a premium.
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Question

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Closed-end funds are not required to provide a prospectus to new shareholders because they are traded on the secondary market like stocks, and their shares are not continuously offered by the fund itself.

Closed-End Funds Are Required to Provide a Prospectus to All