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Hitachi Certifications > HQT-4160 exam dumps | VCE Practice Test Questions 2020

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NEW QUESTION: 1
Which of the following statements is true?
A. The shares of a closed-end investment company almost never trade at exactly its NAV. Rather, shares typically trade at a 5 to 20% discount to the NAV.
B. The shares of an open-end investment company usually trade at a 10 to 25% discount to its NAV, but in some relatively rare instances, the shares trade exactly at NAV.
C. The shares of a closed-end investment company usually trade at exactly its NAV, but in some relatively rare instances, the shares trade at a small discount or premium to the NAV.
D. The shares of a closed-end mutual fund almost never trade exactly at its NAV. Rather, shares typically trade at a 5 to 20% discount to the NAV.
E. The shares of an open-end investment company usually trade at exactly its net asset value (NAV), but in some relatively rare instances, the shares trade at a small discount or premium to the NAV.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Open-end investment companies continue to sell and repurchase shares after their initial public offerings.
They sell shares at the net asset value with or without sales charges, and repurchase shares at the net asset value with or without redemption fees. The shares of closed end investment companies,however, are rarely sold or redeemed by the funds, but typically trade on a stock market. Over the long-run, the shares tend to trade at a 5 to 20% discount to their net asset value (NAV). There is no such thing as a closed-end mutual fund. Only open-end investment companies are referred to as mutual funds.




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HQT-4160 Questions and Answers

HQT-4160 Exam Format | Course Contents | Course Outline | Exam Syllabus | Exam Objectives