Finra Exam Series-7 Topic 3 Question 94 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 94
Topic #: 3

[All Series-7 Questions]

Which of the following statements is pertinent to closed-end investment companies?

Athey are continuously issuing new shares

Bthey are prohibited from issuing any securities other than common stock

Ctheir shares are traded at prices determined in the open market

Dtheir shares are redeemable at net asset value

Show Suggested Answer

Suggested Answer: B

deductions from gross income to offset lower value of equipment. Depreciation is the deduction of costs for capital assets as their value declines.

by Marylin at Aug 04, 2024, 01:15 PM

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Bettyann

4 days ago

C) their shares are traded at prices determined in the open market - that's the key difference between closed-end and open-end funds. Closed-end funds don't issue new shares based on demand like open-end funds do.

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Earnestine

12 days ago

I'm not sure, but I think C is also a valid statement, their shares are traded at prices determined in the open market.

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Mari

13 days ago

I agree with Toi, closed-end investment companies usually have redeemable shares at net asset value.

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Toi

21 days ago

I think the answer is D, their shares are redeemable at net asset value.

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