Question

Can closed-ended funds issue other things besides common stock?

A) No, they can only issue common stock.
B) Yes, they can issue various types of securities.
C) Only preferred stock can be issued by closed-ended funds.
D) Closed-ended funds issue bonds but not common stock.

Answer 1

Yes, closed-ended funds can issue various types of securities.

Step-by-step explanation:

Yes, closed-ended funds can issue various types of securities, not just common stock. Mutual funds can focus on different areas, such as investing in stocks, bonds, or other financial instruments.

For example, a closed-ended fund can issue bonds, preferred stock, or even other types of securities like options or derivatives.