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Portfolios 404: Closed-End Funds

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1.
Placing a market order tells your broker to buy shares only at a specific price or better.
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False. A limit order tells your broker to buy shares only at a specific price or better.
2.
Exchange-traded funds were first introduced in 1993 by the _______.
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American Stock Exchange. They were introduced in 1993 by the American Stock Exchange (AMEX).
3.
Leveraging a closed-end fund could increase the amount of capital in it. Which of the following is not a way to leverage a closed-end fund?
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Secondary share offering. Leverage is done through issuing debt or preferred shares.
4.
Many closed-end funds have low volatility.
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False. Many closed-end funds have high volatility. It is common in these funds.
5.
Which type of mutual fund invests in securities from developing nations?
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Emerging markets fund. Emerging markets funds invest in securities from developing nations.
6.
The prices of closed-end fund shares are mostly determined by _______.
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Supply and demand. Closed-end fund share prices are determined mostly by supply and demand for the funds themselves.
7.
When the demand for a closed-end fund share is less than its supply, the share sells at _______.
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A discount. The share will be discounted to make it more attractive on the market.