Which of the following characteristics apply to mutual funds? (1) Fixed capitalization. (2) Shares (or units)...
Which of the following characteristics apply to mutual funds?
(1) Fixed capitalization.
(2) Shares (or units) are bought and sold at NAV.
(3) Shares (or units) are redeemed by the fund (or trust).
(4) Shares (or units) are can be sold in the market.
Homework Answers
The correct answer is option (2). Shares (or units) are bought and sold at NAV.
NAV determines the price at which the units of mutual funds are bought and sold.
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