Question

ABCD fund has issued 200 million shares. The fund is not going to add share if you send money to the ABCD fund. But you can buy ABCD fund’s shares in the open stock market as you can buy shares of Walmart. ABCD fund is most likely a(n):

Group of answer choices

closed-end mutual fund

public fund

open-end mutual fund

hedge fund

Answer 1

A fund that is traded on the stock exchange as any other stock and cannot be bought or redeemed directly from the issuing company are called close end mutual funds. These companies issue a fixed set of funds that cannot be redeemed like open end mutual funds. Also, they can be easily bought and sold by investors on the stock exchange. Therefore,

ABCD fund is most likely a-

Close-end mutual fund

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