Discount or Premium. What does it mean for a closed-end fund to trade at a discount? What does it mean for a closed-end fund to trade at a premium? (Select the best answer below.) OA. A closed-end fund trades at a discount when a broker deems that it is on sale. Conversely, it trades at a premium when a broker needs to make money. OB. A closed-end fund trades at a discount when it sells below net asset value. Conversely, it trades at a premium when it sells at a price above net asset value. OC. A closed-end fund trades at a discount when it sells at net asset value. Conversely, it trades at a premium when it sells at a price below or above net asset value. OD. A closed-end fund trades at a discount when it sells at a price above net asset value. Conversely, it trades at a premium when it sells at a price below net asset value.
Discount or Premium. What does it mean for a closed-end fund to trade at a discount? What does it mean for a closed-end fund to trade at a premium? (Select the best answer below.) OA. A closed-end fund trades at a discount when a broker deems that it is on sale. Conversely, it trades at a premium when a broker needs to make money. OB. A closed-end fund trades at a discount when it sells below net asset value. Conversely, it trades at a premium when it sells at a price above net asset value. OC. A closed-end fund trades at a discount when it sells at net asset value. Conversely, it trades at a premium when it sells at a price below or above net asset value. OD. A closed-end fund trades at a discount when it sells at a price above net asset value. Conversely, it trades at a premium when it sells at a price below net asset value.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Discount or Premium. What does it mean for a closed-end fund to trade at a discount? What does it mean for a closed-end
fund to trade at a premium? (Select the best answer below.) OA. A closed-end fund trades at a discount when a broker
deems that it is on sale. Conversely, it trades at a premium when a broker needs to make money. OB. A closed-end fund
trades at a discount when it sells below net asset value. Conversely, it trades at a premium when it sells at a price above net
asset value. OC. A closed-end fund trades at a discount when it sells at net asset value. Conversely, it trades at a premium
when it sells at a price below or above net asset value. OD. A closed-end fund trades at a discount when it sells at a price
above net asset value. Conversely, it trades at a premium when it sells at a price below net asset value.
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