A friend has asked you to explain the differences between open-end and closed-end funds. Which of the following will you most likely include in your explanation?

A. Closed-end funds are unavailable to new investors.

B. When investors sell the shares of an open-end fund, they can receive a discount or a premium to the fund’s net asset value.

C. When selling shares, investors in an open-end fund sell the shares back to the fund whereas investors in a closed-end fund sell the shares to others in the secondary market.