Why can closed-end funds sell at prices that differ from net asset value while open-end funds do

Question:

Why can closed-end funds sell at prices that differ from net asset value while open-end funds do not?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

See More Books

Question Posted: Jan 04, 2013 08:10 AM

See More Questions

Why may the annual growth in a funds net asset value not be comparable to the return earned by an individual investor?
Why does net earnings differ from cash flow from operations? Explain.
Why do companies often use prices other than market prices for interdivisional transfers?
East Corp is a mature company and expects its sales and operating costs to be fixed (or unchanged) in perpetuity. It has sales of $524,000 and operating costs of $272,480. The firm has a tax rate of...
Add or subtract. a. a. (5 - 1i) + (3 + 5i) b. (6 + 2i) - (-1 + 2i) c. (2 + 3i) + (2 - 5i) d. (2.35 + 2.71i) - (4.91 + 3.32i)
What is the wavelength (= maximum resolvable distance) of 7.0-TeV protons?
A4-stroke, 4-cylinder, single acting spark ignition petrol engine develops $20 \mathrm{~kW}$ brake power at $3000 \mathrm{rpm}$. The following data are given : Bore $=65 \mathrm{~mm}$, Stroke...
Backflush costing and JIT production. The Rippel Corporation manufactures electrical meters. For August, there were no beginning inventories of direct materials and no beginning or ending work in...
P = 7 kN, w = 12 KN/m and angle is 32 deg Equilibrium and support reactions for beams and frames Question 2a [25 marks] Show that the following beam is statically determinate. Determine the external...
This Mini Practice Set will help you review all the key concepts of the account- ing cycle for a merchandising company along with the integration of payroll. Betty Loeb took over the business now...
Balanced funds, life-cycle funds, and asset allocation funds all invest in both the stock and bond markets. What are the differences among these types of funds?
What are the advantages and disadvantages of exchange-traded funds versus mutual funds?
The table shows the frequency distribution of two lists. List A and list B each contain 40 numbers. What is the difference between the average of the numbers in list Band the average of the numbers...
When a company solicits bill and hold orders from its customers and recognizes the sales in its income before delivery of the goods, this represents improper timing of revenue recognition. True/False
Coherent green light of wavelength $530 \mathrm{~nm}$ passes through two narrow slits for which the center-to-center separation distance is $100 \mu \mathrm{m}$. What is the difference in phase...
One of Sunbeams fictitious financial reporting schemes was formally recording a revenue item in the financial statements in an earlier or later period than the period in which the item should have...
Sunbeam enticed customers to place future periods sales orders early and recorded these as current-period sales as part of its financial reporting scam. True/False
Sunbeam overstated its income by failing to maintain large enough provisions for doubtful debts. True/False
Explain how a matrix organization can perform a project for a functional organization. What are the difficulties, contact points, and communication channels?
Borrowing costs should be recognised as an expense and charged to the profit and loss account of the period in which they are incurred : A. If the borrowing costs relate to qualifying asset B. If the...
Which of the following exceptions do not need to be handled or declared by the method in which they are thrown? (Choose three.) A. FileNotFoundException B. ArithmeticException C. IOException D....
Don Sampson begins a meeting with his financial adviser by outlining his investment philosophy as shown below: Statement Number Statement 1..................Investments should offer strong return...
Monty Frosts tax-deferred retirement account is invested entirely in equity securities. Because the international portion of his portfolio has performed poorly in the past, he has reduced his...
During an interview with her investment adviser, a retired investor made the following two statements: a. I have been very pleased with the returns Ive earned on Petrie stock over the past 2 years...
A child is swinging a 330-g ball at the end of a 66.0-cm-long string in a vertical circle. The string can withstand a tension of 11.0 N before breaking. (a) What is the tension in the string when the...
A steel cable that weighs 8 lb/ft is used to pull a 500 lb block of concrete from the ground to the top of a 120 ft tall building. Let x be the distance, in feet, from the block to the TOP of the...
Three metal fishing weights, each with a mass of 1.00102 g and at a temperature of 100.0C, are placed in 1.00102 g of water at 35.0C. The final temperature of the mixture is 45.0C. What is the...

Why can closed-end funds sell at prices that differ from net asset value while open-end funds do

Question:

Step by Step Answer:

The reason why closedend funds usually sell at pric...View the full answer

Investments

Students also viewed these Accounting questions