closed-end investment company


Also found in: Dictionary, Thesaurus, Legal, Encyclopedia, Wikipedia.
Related to closed-end investment company: Closed End Mutual Funds

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.

closed-end investment company

An investment company that issues a limited number of shares and does not redeem those that are outstanding. Closed-end investment companies are fairly rare; their shares trade on the exchanges or in the over-the-counter market. Thus, like stock of other publicly traded companies, share prices are determined by the pressures of supply and demand rather than by the value of underlying assets. Also called publicly traded fund. Compare mutual fund. See also regulated investment company.
References in periodicals archive ?
If the registration statement has been declared effective, the stock transfer records of the Fund as a closed-end investment company will be permanently closed after the close of business on Friday, June 30, 2006, which will be the last day of trading in the Fund's shares.
Apollo Investment Corporation, or the Company, is a closed-end investment company that has elected to be treated as a business development company under the Investment Company Act of 1940.
Liberty All-Star Equity Fund is a multi-managed, closed-end investment company with more than $1.