Chapter 20

Question 1

closed end funds

Answer 1

: A mutual fund that sells a fixed
number of shares of stock and does not continue
to accept investments.

Question 2

deferred load

Answer 2

A fee on a mutual fund investment that
is charged only if the investment is withdrawn.
The amount of the deferred load usually falls the
longer the investment is left in the fund.

Question 3

diversification

Question 4

hedge funds

Answer 4

A special type of mutual fund that
acquires funds by selling shares but only to very
wealthy people, so they are less regulated than
mutual funds.

Question 5

load funds

Answer 5

: A mutual fund that charges a fee when
money is added to or withdrawn from the fund.

Question 6

net asset value (NAV)

Question 7

no load funds