SIE Exam Practice Question 770
Question: 770
Which of the following is/are correct regarding closed-end mutual funds?
(1) Closed-end mutual funds may issue new shares when an individual buys existing shares.
(2) Closed-end mutual funds may sell at a premium or discount to their net asset value.
Correct Answer: B
Explanation:
Closed-end mutual funds may sell at a premium or discount to their net asset value. Only open-end mutual funds may issue new shares when an individual buys existing shares.
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