What investment fund issues shares only when organized and does not continually issue new shares?

• A. Closed-End Fund
• B. Open-End Fund
• C. Mutual Fund
• D. Money Market Fund

Answer: (A)

Shares are issued differently depending on fund structure. A closed-end fund starts with a fixed number of shares sold in an initial offering and does not issue new shares after that. After the IPO, investors trade those shares on an exchange, so the total number of shares stays the same and the market price is set by supply and demand, often trading at a premium or discount to the fund’s net asset value.

Open-end funds, including most mutual funds and money market funds, continuously issue and redeem shares to match investor inflows and outflows. That means the number of shares outstanding can change daily as new money comes in and existing money is redeemed.

So, the described behavior—sharing issuance only when organized and not continuously issuing new shares—matches a closed-end fund.