Question: Discuss the difference in their structures that explain these differences between a closed-end fund and an open-ended mutual fund: a) When investors buy shares of

Discuss the difference in their structures that explain these differences between a closed-end fund and an open-ended mutual fund:

a) When investors buy shares of the open-end mutual fund (in the aggregate), the number of fund shares increase. But, this is not the case with a closed-end fund. Why?

b) An open-end mutual fund keeps a larger % cash (or cash-equivalent) allocation in the portfolio than the closed-end fund does. Why?

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