Closed-end funds are baskets of stocks that are grouped according to an investment objective and overseen by a manager. But unlike open-end funds, which continue to increase their asset base by selling to new shareholders, closed-end funds bring in assets by selling a fixed number of shares through an initial offering. After the initial sale, the closed-end fund's shares trade like stocks on exchanges like the NYSE or the AMEX. Low demand for a fund can cause closed-end shares to trade at discounts to net asset value. High demand can create premiums to NAV.
An investment company that sells shares like any other corporation and usually does not redeem its shares. A publicly traded fund sold on stock exchanges or over the counter that may trade above or below its net asset value. Antonym: Open-end fund.
a pool of asset managed by the issuing investment company just like any other mutual fund
Unlike open-end mutual funds, which are always issuing and redeeming shares at net asset value (sometimes with a commission), closed-end funds trade like an individual security in a secondary market. Because of this, the securities can trade at a discount (or premium) to their actual net asset value.
A mutual fund that does not sell unlimited shares; one with a specific number of outstanding shares.
A closed end fund, usually known as an Investment Trust, has a fixed number of shares or units in issue, although a C-share issue can be undertaken to expand the participation in the fund. This compares with an open-ended fund, such as a unit trust, which can issue and redeem shares and units on a frequent basis.
A closed-end fund (CEF) is a publicly traded investment company. It collects money from investors through an initial public offering (IPO) and uses this money to invest in securities. CEFs issue only a fixed number of shares and trade on stock exchanges.
Funds whose shares are traded on an exchange, similar to stocks. The price per share doesn't typically equal the net asset value of a share.
Funds whose shares are limited and are traded on an exchange, similar to stocks.