An investor generally purchases an open-end mutual fund from which of the following parties?
A.
The NYSE
B.
The fund ' s custodian
C.
The fund ' s underwriter
D.
An existing shareholder
The Answer Is:
C
This question includes an explanation.
Explanation:
Step by Step Explanation:
Open-End Mutual Funds: Shares are purchased directly from the fund or its underwriter at the current Net Asset Value (NAV), plus any applicable sales charges.
Custodian: Holds the fund ' s assets but does not sell shares.
NYSE and Shareholders: Open-end funds do not trade on exchanges or between individual shareholders.
SEC Mutual Fund Basics: SEC Mutual Funds.
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