I missed a practice question when I answered that open-end funds can i...

Open-end and closed-end bond funds are large bond portfolios managed by a registered investment adviser. Investors buy shares of common stock in that bond portfolio. On a regular schedule, shareholders receive the net income derived from bond interest as income dividends. Once a year, shareholders receive their share of any capital gains realized through the trading of the portfolio by the investment adviser. Closed-end funds typically use leverage, so even within their equity portfolios they frequently issue senior securities in the form of preferred stock and, even, bonds. Open-end funds do not issue debt securities to their investors.