Question

Closed-end investment companies 1. have a fixed capital structure.2. issue new stock whenever an individual buys shares.3. may sell for a premium over net asset value.4. must sell for their net asset value"A. 1 and 3 B. 1 and 4C. 2 and 3.D. 2 and 4 7.

Answer 1

Answer:

1. have a fixed capital structure

3. may sell for a premium over net asset value

Explanation:

Close-end companies make profit by their investing in other companies. It raises fund and makes investment on the purchase and sales of other companies.

Their capital structure is fixed and makes money by selling for a premium over net asset value of the shares.