A customer buys 100 shares of an investment company and pays the market price plus a commission. the investor has purchased Closed-end investment company.
What are closed-end investment companies?
- Major conclusions. Investment firms known as closed-end funds have shares that can be bought and sold publicly, just like stocks or exchange-traded funds (ETFs).
- When shareholders purchase or sell shares, no money moves into or out of the funds. Shares can be bought and sold publicly, much like stocks.
- The primary distinction between the two is that while a closed-end company makes a single offering of its shares, an open-end corporation continuously offers its shares.
- A continuously offered share of a redeemable open-end investment corporation is one that is available.
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