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Finra Series-7 Exam - Topic 3 Question 94 Discussion

Posted by Marylin on Aug 04, 2024 at 01:15 PM

Which of the following statements is pertinent to closed-end investment companies?

Suggested Answer: B

deductions from gross income to offset lower value of equipment. Depreciation is the deduction of costs for capital assets as their value declines.


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33 comments · newest first
RE
Reynalda 11 months ago
Closed-end funds don’t continuously issue new shares, just a one-time offering.
JU
Juliann 11 months ago
I thought closed-end funds could issue other types too.
EL
Elmer 12 months ago
Wait, are they really only allowed to issue common stock?
OL
Olive 12 months ago
Totally agree, option C is spot on!
MI
Michael 1 year ago
Closed-end funds trade at market prices, not NAV.
DO
Dorathy 1 year ago
I’m pretty certain that their shares aren’t redeemable at NAV, so I think option D is definitely wrong.
DE
Delsie 1 year ago
I feel like we covered that closed-end funds have a fixed number of shares, but I can't recall if they can issue other types of securities.
KA
Kate 1 year ago
I remember something about how closed-end funds trade on the market, so maybe option C is the right choice?
FR
Fredric 1 year ago
I think closed-end funds don't continuously issue new shares, but I'm not completely sure which option that relates to.
EL
Ellsworth 1 year ago
This is a tricky one. I know closed-end funds have some key differences from open-end funds, but I'm having trouble remembering the specifics. I'll make an educated guess and go with C, but I'm not 100% sure.
LO
Lorean 1 year ago
Okay, let me see. Closed-end funds can't redeem their shares at net asset value, so that rules out option D. And they're not prohibited from issuing other securities, so B is not correct. I think C is the best answer here.
CY
Cyndy 1 year ago
I'm pretty confident about this one. Closed-end investment companies have their shares traded on the open market, so option C seems like the right answer.
AS
Ashton 1 year ago
Hmm, I'm a bit unsure here. I know closed-end funds don't continuously issue new shares, but I'm not sure about the other options. I'll have to think this through carefully.
VI
Vicky 1 year ago
Ah, I think I've got it. vSphere Namespaces allow you to partition a Kubernetes cluster and apply different authorization and policies to each namespace, so teams can share the same cluster but have their own isolated environments. That's my strategy for this question.
JA
Jaclyn 1 year ago
I think this might be a cost-effectiveness analysis because they are comparing clinical outcomes and costs, but I'm not entirely sure.
HE
Herminia 1 year ago
Okay, I've got this. The key is to identify which statement is not accurate about Oracle patches. I think I can eliminate a few of these options pretty quickly.
AL
Alva 1 year ago
I'm gonna have to go with C. Closed-end funds are like the stock market's VIP lounge - their shares are traded at whatever price people are willing to pay!
TY
Ty 1 year ago
↳ replying to Alva
Definitely, their shares are not continuously issued like in open-end funds.
KR
Krissy 1 year ago
↳ replying to Alva
I agree, closed-end funds are like the VIP lounge of the stock market!
MA
Ma 1 year ago
↳ replying to Alva
I think C is the correct answer. Closed-end funds are traded at prices determined in the open market.
HO
Howard 1 year ago
B) they are prohibited from issuing any securities other than common stock - wait, what? Since when do closed-end funds deal in anything other than plain old common shares? This one's too easy!
NA
Nan 2 years ago
Hmm, I think I'll go with C. Open market pricing makes sense for closed-end funds. I can already hear the trading bell ringing!
SH
Sheron 1 year ago
↳ replying to Nan
I'm not sure about this one, but C sounds reasonable. The open market pricing seems logical for closed-end investment companies.
MA
Malcom 1 year ago
↳ replying to Nan
I think D is the right choice. Closed-end funds usually have redeemable shares at net asset value.
EV
Eveline 1 year ago
↳ replying to Nan
I agree, C is the correct answer. The open market determines the prices of their shares.
MA
Madelyn 2 years ago
D) their shares are redeemable at net asset value - that's a trick question. Closed-end funds don't redeem shares at NAV, that's only for open-end funds.
BE
Bettyann 2 years ago
C) their shares are traded at prices determined in the open market - that's the key difference between closed-end and open-end funds. Closed-end funds don't issue new shares based on demand like open-end funds do.
KE
Keneth 1 year ago
↳ replying to Bettyann
D) their shares are redeemable at net asset value
NA
Nan 1 year ago
↳ replying to Bettyann
C) their shares are traded at prices determined in the open market
AR
Arminda 1 year ago
↳ replying to Bettyann
A) they are continuously issuing new shares
EA
Earnestine 2 years ago
I'm not sure, but I think C is also a valid statement, their shares are traded at prices determined in the open market.
MA
Mari 2 years ago
I agree with Toi, closed-end investment companies usually have redeemable shares at net asset value.
TO
Toi 2 years ago
I think the answer is D, their shares are redeemable at net asset value.
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