When investment funds experience dramatic liquidity needs,the liquidated assets are distributed to fund's shareholders on first-come,first-served basis.

Question

Quizplus · Accepted Answer

When investment funds experience dramatic liquidity needs, they may have to impose redemption gates or suspend redemptions temporarily to prevent a fire sale of assets and ensure a fair distribution of assets to all shareholders. The assets are not distributed on a first-come, first-served basis.

When Investment Funds Experience Dramatic Liquidity Needs,the Liquidated Assets Are