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Canadian Securities Course (CSC) Practice Exam · Question

Which of the following is a key characteristic of an open-end mutual fund?

Open-end mutual funds continuously issue and redeem shares directly with the fund company at their daily calculated Net Asset Value (NAV).

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Question: Which of the following is a key characteristic of an open-end mutual fund?

Answer options: ✅ It continuously issues and redeems its shares at Net Asset Value (NAV).

  • Its shares trade on a stock exchange.
  • It has a fixed number of shares outstanding.
  • Its price is determined by supply and demand in the secondary market.

Correct answer: It continuously issues and redeems its shares at Net Asset Value (NAV).

Explanation: Open-end mutual funds continuously issue and redeem shares directly with the fund company at their daily calculated Net Asset Value (NAV).

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