Question
For each of the following statements, indicate whether the statement applies to an open-end mutual fund , a closed-end mutual fund , both , or
For each of the following statements, indicate whether the statement applies to an open-end mutual fund, a closed-end mutual fund, both, or neither.
Statement | Answer |
Allows an individual investor to effectively own hundreds of different stocks or bonds with a relatively small investment. |
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An investor who wants to acquire shares must buy them from another investor on the open market. |
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Buy and sell orders are filled only at the end of the trading day, not during the trading day. |
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Consistently perform better than the market as measured by a benchmark. |
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Purchasing shares in the fund gives you partial ownership in a portfolio of securities. |
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The purchase price of the fund is the funds net asset value.
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The purchase price of the fund may be at a premium or discount to the net asset value. |
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When an investor sends cash to the fund, new shares are created by the fund for that investor. |
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When buying shares through a broker, you pay a standard commission just as you would with a stock. |
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When purchasing shares in the fund, you may pay a substantial commission called a load. |
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