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Portfolios 404: Closed-End Funds

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1.
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.
2.
You can buy exchange-traded funds from a _______.
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Broker anytime during the trading day. Investors must buy and sell their shares through a broker on the open market any time during the trading day.
3.
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.
4.
When a discount begins to shrink, an investor is likely to lose money.
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False. An investor can make money if he or she bought it at discount and the discount shrinks.
5.
Closed-end funds can, if they wish, repurchase shares from investors.
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True. This is called a tender offer.
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.
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.