Help
Course Catalog > Portfolios > 400
Portfolios 404: Closed-End Funds

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Closed-end funds tend to have higher commissions than regular mutual funds.
Choose wisely. There is only one correct answer.
True. This is because the shares are fixed and can be bought only through the secondary market, unless they are new issues.
2.
The most expensive type of broker is a full-service broker.
Choose wisely. There is only one correct answer.
True. A full-service broker charges the highest commissions.
3.
Exchange-traded funds were first introduced in 1993 by the _______.
Choose wisely. There is only one correct answer.
American Stock Exchange. They were introduced in 1993 by the American Stock Exchange (AMEX).
4.
Giving existing shareholders the right to invest more capital into a closed-end fund in proportion to their existing ownership is called _______.
Choose wisely. There is only one correct answer.
A rights offering. Rights offerings let current shareholders buy additional stock.
5.
Which type of mutual fund invests in securities from developing nations?
Choose wisely. There is only one correct answer.
Emerging markets fund. Emerging markets funds invest in securities from developing nations.
6.
The prices of closed-end fund shares are mostly determined by _______.
Choose wisely. There is only one correct answer.
Supply and demand. Closed-end fund share prices are determined mostly by supply and demand for the funds themselves.
7.
Which of the following factors does not influence whether a closed-end fund share sells at a discount or premium?
Choose wisely. There is only one correct answer.
Diversity. Tax liability and low net asset value are both factors that determine whether a share sells at a discount or a premium.