Which type of mutual fund can be purchased at a premium or discount?
A)Load fund
B)No-load fund
C)Open-end fund
D)Closed-end fund

Question

Quizplus · Accepted Answer

Closed-end funds are traded on stock exchanges and their prices are determined by supply and demand, which means they can be purchased at a premium or discount to their net asset value (NAV). Load funds and no-load funds refer to the fees or commission charged to investors and do not affect the price at which the funds can be purchased. Open-end funds trade at their NAV, so they cannot be purchased at a premium or discount.

Which Type of Mutual Fund Can Be Purchased at a Premium