An open-end mutual fund has a fixed number of shares which are sold by the mutual fund at its inception.

Question

Quizplus · Accepted Answer

An open-end mutual fund does not have a fixed number of shares at its inception. Instead, new shares are created and sold as investors buy into the fund, and existing shares are redeemed as investors sell their holdings. This allows the fund to continue operating regardless of how many investors buy or sell shares at any given time.

An Open-End Mutual Fund Has a Fixed Number of Shares