SIE Exam Practice Question 312

Question: 312

With regard to the price of closed-end fund shares held by investors which of the following statements is TRUE?

A. Shares are sold at a discount when the securities in the fund have increased in value relative to their NAV

B. Shares are sold at the price calculated at the close of business on that day

C. Shares may be sold at a discount or premium to their NAV

D. The price is set by formula each business day