Question

regarding open-end and closed-end investment companies, all of the following are true except a) both may be either diversified or nondiversified portfolios. b) both may avoid taxation by distributing all of their net investment income to shareholders. c) both offer an unlimited number of shares in a continuous public offering. d) both may offer numerous investment objectives to select from.

Answer 1

The false statement is both offer an unlimited number of shares in a continuous public offering. (option c)

What are open-end and closed-end investment companies?

Open-end investment companies are companies that allow investors invest in their company continuously through the purchase of their shares. On the other hand, closed-end investment companies close their company to new investors

An advantage of open-end investment companies is they are highly liquid. A disadvantage of open-end investment companies is the company is vulnerable from large inflows and outflow of investments.

An advantage of closed-end investment companies is they do not incur charges with regards to the redemption activities of investors. A disadvantage of closed-end investment companies is that investors cannot withdraw their funds until maturity.

To learn more about open-end investment companies, please check: brainly.com/question/20350725

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