Which type of investment is least likely to allow investors to trade in and out of positions throughout the day?

Open-end investment companies, which are commonly known as mutual funds, are structured in a way that limits their shares from being traded on the open market throughout the day like stocks or ETFs. Instead, transactions in mutual fund shares take place at the end of the trading day when the fund's net asset value (NAV) is calculated. Investors buy and sell shares based on this NAV, not at market prices throughout the trading day.

In contrast, closed-end investment companies and ETFs trade on exchanges just like individual stocks, enabling investors to buy and sell them throughout the day at market prices. NYSE listed stocks also have the same trading flexibility. Therefore, when considering the ability to trade throughout the day, open-end investment companies stand out as the least suitable option for investors looking to make frequent trades.