Which statement about a closed-end investment company is accurate?

A closed-end investment company is indeed traded in the open market at its current market price. This means that shares of the company are bought and sold in a secondary market, similar to how stocks are traded. The market price of these shares can fluctuate based on supply and demand, which is one of the defining characteristics of closed-end funds. This market trading often results in the shares being bought at a premium or discount to the net asset value (NAV) of the underlying assets.

In contrast, some of the other options outline characteristics not applicable to closed-end funds. For instance, these funds do not continuously offer new shares; they typically issue a fixed number of shares at the time of their initial public offering (IPO). Additionally, closed-end funds generally do incur management fees for the services provided in managing the fund’s investments, and there is no regulatory requirement mandating regular dividends to shareholders, making each of these options unlikely to accurately describe the nature of closed-end investment companies.