Closed-end country funds trading at premium or discount

Why closed-end country funds often trade at the premium or discount?

E

Expert

Verified

CECFs trade at the premium or discount since capital markets of home and host countries are segmented, preventing the cross-border arbitrage. If the cross-border arbitrage is really possible, CECFs must be trading near their net asset values.

   Related Questions in Financial Accounting

  • Q : Define Factitious Assets Factitious

    Factitious Assets: When any asset that has no market price which asset is termed as factitious assets. This is illustrated as expenditures of capital expenditure. The main illustration of such factitious assets is: Preliminary expenses, discount on is

  • Q : Trends in international business

    Explain three important trends which have prevailed in the international business during last two decades.

  • Q : Phenomenon of pricing-to-market

    Describe the phenomenon of pricing-to-market.

  • Q : Merits of Budgetary Control Write down

    Write down the merits of Budgetary Control?

  • Q : Investment approach of Warren Buffet

    Investment approach of Warren Buffet: According to Benjamin Graham, the father of securities analysis, value investment was the only form of investment which means that purchasing a stock at less than its intrinsic

  • Q : Conversion and competitive effects of

    Discuss the conversion and competitive effects of exchange rate changes on the firm’s operating cash flow.

  • Q : Maintaining the fixed exchange rate

    Explain why “Once  the capital markets are integrated, it becomes difficult for the country in order to maintain the fixed exchange rate”. 

  • Q : Leadership qualities required for

    Question Can one person in an organization make a difference? Write an essay on the leadership qualities required for running modern organizations <

  • Q : Matlab Applications in Digital Signal

    Digital signal processing appears like a nightmare for students as it is most difficult and tricky subject in engineering core curriculum. If you are getting troubles in digital signal processing assignment or related project, then move

  • Q : State Return on Investment or ROI

    Return on Investment (ROI): It is a performance measure employed to calculate the efficiency of an investment or to compare the effectiveness of a number of various investments. To compute ROI, the advantage (return) of an investment is divided by the

©TutorsGlobe All rights reserved 2022-2023.