ESSENTIALS OF INVESTMENTS
(GLOBAL EDITION) CHAPTER 4
QUESTIONS WITH CORRECT ANSWERS
2024-2025
investmentKcompaniesK-KcorrectKanswer-
financialKintermediariesKthatKinvestKtheKfundsKofKindividualKinvestorsKinKsecuritiesKorKotherKassets
netKassetKvalueK(NAV)K-KcorrectKanswer-assetsKminusKliabilitiesKexpressedKonKaKper-shareKbasis
unitKinvestmentKtrustsK-KcorrectKanswer-
moneyKpooledKfromKmanyKinvestorsKthatKisKinvestedKinKaKportfolioKfixedKforKtheKlifeKofKtheKfund
open-endKfundK-KcorrectKanswer-aKfundKthatKissuesKorKredeemsKitsKsharesKatKnetKassetKvalue
closed-endKfundK-KcorrectKanswer-
sharesKmayKnotKbeKredeemed,KbutKinsteadKareKtradedKatKpricesKthatKcanKdifferKfromKnetKassetKvalue
loadK-KcorrectKanswer-aKsalesKcommissionKchargedKonKaKmutualKfund
hedgeKfundK-KcorrectKanswer-
aKprivateKinvestmentKpool,KopenKtoKwealthyKorKinstitutionalKinvestors,KthatKisKexemptKfromKSECKregulationK
andKcanKthereforeKpursueKmoreKspeculativeKpoliciesKthanKmutualKfunds
fundsKofKfundsK-KcorrectKanswer-mutualKfundsKthatKprimarlyKinvestKinKsharesKofKotherKmutualKfunds
12-b1KfeesK-KcorrectKanswer-
annualKfeesKchargedKbyKaKmutualKfundKtoKpayKforKmarketingKandKdistributionKcosts
softKdollarsK-KcorrectKanswer-
theKvalueKofKresearchKservicesKthatKbrokerageKhousesKprovideK'freeKofKcharge'KinKexchangeKforKtheKinvestm
enstKmanager'sKbusiness
(GLOBAL EDITION) CHAPTER 4
QUESTIONS WITH CORRECT ANSWERS
2024-2025
investmentKcompaniesK-KcorrectKanswer-
financialKintermediariesKthatKinvestKtheKfundsKofKindividualKinvestorsKinKsecuritiesKorKotherKassets
netKassetKvalueK(NAV)K-KcorrectKanswer-assetsKminusKliabilitiesKexpressedKonKaKper-shareKbasis
unitKinvestmentKtrustsK-KcorrectKanswer-
moneyKpooledKfromKmanyKinvestorsKthatKisKinvestedKinKaKportfolioKfixedKforKtheKlifeKofKtheKfund
open-endKfundK-KcorrectKanswer-aKfundKthatKissuesKorKredeemsKitsKsharesKatKnetKassetKvalue
closed-endKfundK-KcorrectKanswer-
sharesKmayKnotKbeKredeemed,KbutKinsteadKareKtradedKatKpricesKthatKcanKdifferKfromKnetKassetKvalue
loadK-KcorrectKanswer-aKsalesKcommissionKchargedKonKaKmutualKfund
hedgeKfundK-KcorrectKanswer-
aKprivateKinvestmentKpool,KopenKtoKwealthyKorKinstitutionalKinvestors,KthatKisKexemptKfromKSECKregulationK
andKcanKthereforeKpursueKmoreKspeculativeKpoliciesKthanKmutualKfunds
fundsKofKfundsK-KcorrectKanswer-mutualKfundsKthatKprimarlyKinvestKinKsharesKofKotherKmutualKfunds
12-b1KfeesK-KcorrectKanswer-
annualKfeesKchargedKbyKaKmutualKfundKtoKpayKforKmarketingKandKdistributionKcosts
softKdollarsK-KcorrectKanswer-
theKvalueKofKresearchKservicesKthatKbrokerageKhousesKprovideK'freeKofKcharge'KinKexchangeKforKtheKinvestm
enstKmanager'sKbusiness