UNIT 02.01 - Open End vs Closed End

Question 1

Open-End or Closed-End?

CAPITALIZATION

Unlimited
Continuous offering of shares

Answer 1

Open-End

Question 2

Open-End or Closed-End?

CAPITALIZATION

Fixed
Single offering of shares

Answer 2

Closed-End

Question 3

Open-End or Closed-End?

ISSUES

Common stock only
No debt securities
Permitted to borrow

Answer 3

Open-End

Question 4

Open-End or Closed-End?

ISSUES

May issue common and preferred stock and debt securities

Answer 4

Closed-end

Question 5

Open-End or Closed-End?

SHARES

Full or fractional

Answer 5

Open-end

Question 6

Open-End or Closed-End?

SHARES

Full only

Answer 6

Closed-end

Question 7

Open-End or Closed-End?

OFFERINGS AND TRADING

Sold and redeemed by the fund only;
continuous primary offering;
must redeem shares

Answer 7

Open-end

Question 8

Open-End or Closed-End?

OFFERINGS AND TRADING

Initial primary offering
secondary trading OTC or on an exchange
Does not redeem shares

Answer 8

Closed-end

Question 9

Open-End or Closed-End?

PRICING

Selling price is determined by formula in the prospectus

Answer 9

Open-end

Question 10

Open-End or Closed-End?

PRICING

Current market value + commission
price determined by supply and demand

Answer 10

Closed-end

Question 11

Open-End or Closed-End?

SHAREHOLDER RIGHTS

Dividends (when declared)
Voting

Answer 11

Open-end

Question 12

Open-End or Closed-End?

SHAREHOLDER RIGHTS

Dividends (when declared);
voting;
preemptive rights

Answer 12

Closed-end

Question 13

Open-End or Closed-End?

EX-DATE

Set by board of directors

Answer 13

Open-end

Question 14

Open-End or Closed-End?

EX-DATE

Set by SRO

Answer 14

Closed-End

Question 14

Open-End or Closed-End?

EX-DATE

Set by SRO

Answer 14

Closed-End