Question

Which of the following terms refers most closely to the following definition: an actively-managed mutual fund...

Which of the following terms refers most closely to the following definition: an actively-managed mutual fund that issues a fixed number of shares at inception that are not repurchased by the issuing company but are traded on the secondary market (like the New York Stock Exchange) based on supply and demand for the shares:

Group of answer choices

Closed-End Fund

Open-End Fund

Externally-Traded Fund

Diamond Investment Trust

Non-Returnable Investment Trust

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Answer #1

A. closed -End Fund.

A closed end fund issues a fixed number of shares at inception, which are not repurchased and are traded on the secondary market based on supply and demand for the shares.

An open ended fund will issue and redeem the shares, they can issue unlimited number of shares.

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