The reason behind the requirement of keeping cash or cash equivalent securities in case of open end funds, but not in the case of closed end funds. Introduction: Open end funds are offered by the fund company directly to investors. The quantity of shares is fixed in case of open end funds. Closed end funds on the other hand, are generally sold in the secondary market and they are not redeemed by the fund manager. Due to such an arrangement the trading of shares might take place at a discount or substantial premium with respect to its NAV.

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Answer 1

Question

Chapter 4, Problem 10PS

Summary Introduction

To determine:

The reason behind the requirement of keeping cash or cash equivalent securities in case of open end funds, but not in the case of closed end funds.

Introduction:

Open end funds are offered by the fund company directly to investors. The quantity of shares is fixed in case of open end funds. Closed end funds on the other hand, are generally sold in the secondary market and they are not redeemed by the fund manager. Due to such an arrangement the trading of shares might take place at a discount or substantial premium with respect to its NAV.

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Answer 2

Question

Chapter 4, Problem 10PS

Summary Introduction

To determine:

The reason behind the requirement of keeping cash or cash equivalent securities in case of open end funds, but not in the case of closed end funds.

Introduction:

Open end funds are offered by the fund company directly to investors. The quantity of shares is fixed in case of open end funds. Closed end funds on the other hand, are generally sold in the secondary market and they are not redeemed by the fund manager. Due to such an arrangement the trading of shares might take place at a discount or substantial premium with respect to its NAV.

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Answer 3

Question

Chapter 4, Problem 10PS

Summary Introduction

To determine:

The reason behind the requirement of keeping cash or cash equivalent securities in case of open end funds, but not in the case of closed end funds.

Introduction:

Open end funds are offered by the fund company directly to investors. The quantity of shares is fixed in case of open end funds. Closed end funds on the other hand, are generally sold in the secondary market and they are not redeemed by the fund manager. Due to such an arrangement the trading of shares might take place at a discount or substantial premium with respect to its NAV.

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Answer 4

Question

Chapter 4, Problem 10PS

Summary Introduction

To determine:

The reason behind the requirement of keeping cash or cash equivalent securities in case of open end funds, but not in the case of closed end funds.

Introduction:

Open end funds are offered by the fund company directly to investors. The quantity of shares is fixed in case of open end funds. Closed end funds on the other hand, are generally sold in the secondary market and they are not redeemed by the fund manager. Due to such an arrangement the trading of shares might take place at a discount or substantial premium with respect to its NAV.

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Answer 5

Chapter 4, Problem 10PS

Summary Introduction

To determine:

The reason behind the requirement of keeping cash or cash equivalent securities in case of open end funds, but not in the case of closed end funds.

Introduction:

Open end funds are offered by the fund company directly to investors. The quantity of shares is fixed in case of open end funds. Closed end funds on the other hand, are generally sold in the secondary market and they are not redeemed by the fund manager. Due to such an arrangement the trading of shares might take place at a discount or substantial premium with respect to its NAV.

Answer 6

Chapter 4, Problem 10PS

Summary Introduction

To determine:

The reason behind the requirement of keeping cash or cash equivalent securities in case of open end funds, but not in the case of closed end funds.

Introduction:

Open end funds are offered by the fund company directly to investors. The quantity of shares is fixed in case of open end funds. Closed end funds on the other hand, are generally sold in the secondary market and they are not redeemed by the fund manager. Due to such an arrangement the trading of shares might take place at a discount or substantial premium with respect to its NAV.

Answer 7

Chapter 4, Problem 10PS

Summary Introduction

To determine:

The reason behind the requirement of keeping cash or cash equivalent securities in case of open end funds, but not in the case of closed end funds.

Introduction:

Open end funds are offered by the fund company directly to investors. The quantity of shares is fixed in case of open end funds. Closed end funds on the other hand, are generally sold in the secondary market and they are not redeemed by the fund manager. Due to such an arrangement the trading of shares might take place at a discount or substantial premium with respect to its NAV.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 4 - Prob. 1PS Ch. 4 - Prob. 2PS Ch. 4 - Prob. 3PS Ch. 4 - Prob. 4PS Ch. 4 - Prob. 5PS Ch. 4 - Prob. 6PS Ch. 4 - Prob. 7PS Ch. 4 - Prob. 8PS Ch. 4 - Prob. 9PS Ch. 4 - Prob. 10PS

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