Closed-End Fund (redirected from Closed-end funds)

Closed-end fund

An investment company that issues 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. Related: Open-end fund.

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Closed-End Fund

A mutual fund that issues a fixed number of shares at its establishment, and, afterwards, neither increases nor decreases the number of shares. Like other mutual funds, a closed-end fund is actively managed, meaning that the securities underlying the fund change from time to time in accordance with the fund's investment goals. A shareholder in a closed-end fund redeems shares with the issuer as with open-end funds, but may trade shares as if they were stocks. The value of shares in a closed-end fund is determined by supply, demand, and the fund's net asset value. See also: Exchange-traded fund.

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Closed-end fund. Closed-end mutual funds are actively managed funds that raise capital only once, by issuing a fixed number of shares. Like other mutual funds, however, fund managers buy and sell individual investments in keeping with their investment objectives.

The shares are traded on an exchange and their prices fluctuate throughout the trading day, based on supply, demand, and the changing values of their underlying holdings. Most single country funds are closed-end funds.

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Closed-End Fund

What Does Closed-End Fund Mean?

A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund then issues shares that are listed and traded like a stock on a stock exchange. Also known as a closed-end investment or closed-end mutual fund.

Investopedia explains Closed-End Fund

Despite the similarity in name, a closed-end fund has little in common with a conventional mutual fund, which is technically known as an open-end fund. The former raises a prescribed amount of capital only once through an IPO by issuing a fixed amount of shares, which are purchased by investors in the closed-end fund as stock. Unlike regular stocks, a closed-end fund represents an interest in a specialized portfolio of securities that is managed actively by an investment advisor and typically concentrates on a specific industry, geographic region, or sector. The share price of a closed-end fund fluctuates in accordance with market forces (supply and demand) as well as the changing values of the securities in the fund's holdings.

Related Terms:
• Exchange Traded Fund
• Mutual Fund
• Net Asset Value—NAV
• Open-End Fund
• Stock