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The following information is about Continuous Issue Of Redeemable Securities.

Continuous Issue Of Redeemable Securities Defined

Manner in which shares of a mutual fund are issued. The shares purchased are new shares, and when a shareholder wishes to sell shares, he sells them back to the fund itself (redeems them) rather than selling them on the open market. The shares repurchased by the mutual fund are retired: they do not become treasury stock, nor may they be reissued; the shares simply cease to exist.

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