John Dapper is an investor who has just purchased shares of Grande Investments, a pooled investment vehicle, on the New York Stock Exchange (NYSE). Grande Investments is most likely: A. a closed-end mutual fund. B. an open-end mutual fund. C. not a mutual fund.

The correct answer is A. Since Grande Investments is a pooled investment vehicle whose shares can be purchased from the secondary market, it is categorized as a closed-end mutual fund. Open-end fund's shares can only be purchased from the fund managing firm. Hedge fund shares rarely trade on exchanges.

CFA Level 1 Question Of The Week - Equity Investments (3) - CFA Level 1

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This topic has 1 reply, 1 voice, and was last updated Jul-1912:15 pm by Matt_AnalystPrep.

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- Matt_AnalystPrep
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  - CFA Charterholder
  22 Jul 2019 at 11:31 am
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  John Dapper is an investor who has just purchased shares of Grande
  Investments, a pooled investment vehicle, on the New York Stock Exchange
  (NYSE). Grande Investments is most likely:
  - A. a closed-end mutual fund.
  - B. an open-end mutual fund.
  - C. not a mutual fund.
- Matt_AnalystPrep
  Participant
  - CFA Charterholder
  31 Jul 2019 at 12:15 pm
  Up
  3
  ::
  The correct answer is A.
  
  Since Grande Investments is a pooled investment vehicle whose shares can be purchased from the secondary market, it is categorized as a closed-end mutual fund. Open-end fund’s shares can only be purchased from the fund managing firm. Hedge fund shares rarely trade on exchanges.
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