CFA CFA Level 1 CFA Level 1 Question of the Week – Equity Investments

CFA Level 1 Question of the Week – Equity Investments

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    • Matt_AnalystPrep
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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
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      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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