1. Distinguish between an open-end fund and a closed-end fund.
An open-end fund is always open during the day; a closed-end fund can sometimes close during the day.
An open-end fund isssues new shares as new money is recceived; a closed-end fund only issues shares one tine.
An open-end fund is never liquid; a closed-end fund is sometimes liquid
All of the above
2. Buffalo Co. compensates its executives with restricted stock. During 2017, the company granted 14,250 shares of $1 par value restricted common stock that will vest over ten (10) years. The market value of the shares was $9 at the time of the grant.
What is the impact of this transaction on additional paid-in capital?
A. Increase additional paid-in capital by $114,000
B. Increase additional paid-in capital by $14,250
C. Increase additional paid-in capital by $128,250
D. Increase additional paid-in capital by $40,750
E. Paid-in capital is not impacted by this transaction