Series 7 - General Securities Representative Exam
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Premium to NAV describes
When shares of an open-end fund are trading at a higher price than the fund's NAV
A
When shares of a closed end fund are trading at a higher price than the fund's NAV
B
When shares of a closed end fund are trading at a low price than the fund's NAV
C
When shares of an open-end fund are lower at a higher price than the fund's NAV
D
Explanations
The key word here is premium. Closed end funds trade on the open market and rarely trade at NAV. Mutual funds only trade at the NAV (open end funds)