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Portfolios 404: Closed-End Funds

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1.
Diversified funds usually reflect a particular investment philosophy.
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True. For example, they may reflect balance, or they may reflect diversity within a narrow objective.
2.
Using your securities as collateral to buy more shares is called _______.
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Leveraging. You must put up your own securities as protection for the leveraging.
3.
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.
4.
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.
5.
Which of the following factors does not influence whether a closed-end fund share sells at a discount or premium?
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Diversity. Tax liability and low net asset value are both factors that determine whether a share sells at a discount or a premium.
6.
Closed-end funds can, if they wish, repurchase shares from investors.
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True. This is called a tender offer.
7.
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.