Frequently Asked Questions About Closed-End Funds

 

 

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March 13, 2008

TO: CLOSED-END INVESTMENT COMPANY COMMITTEE No. 7-08
SEC RULES COMMITTEE No. 21-08     RE: FREQUENTLY ASKED QUESTIONS ABOUT CLOSED-END FUNDS

 

The Investment Company Institute recently posted on its website a discussion of closed-end funds that included general information about closed-end funds as well as closed-end funds’ use of auction rate preferred securities, the causes and implications of failed auctions, and the responsibilities of closed-end funds in the event of a failed auction.  That has now been updated to include a discussion of the responsibilities of closed-end fund directors to common and preferred shareholders. [1]

 

Dorothy M. Donohue
Senior Associate Counsel

 

 [1] That discussion can be found at http://www.ici.org/home/faqs_closed_end.html.