Saturday, December 25, 2010

Closed-end Fund

Closed-end funds are a type of investment company that sell a fixed amount of shares, sometimes in an Initial Public Offering. Instead of share being redeemed or withdrawals, investors wanting to withdraw funds need to sell their shares to another investor. Thus closed-end funds are generally publicly traded, and some trade on the stock market i.e. as ETFs or Exchange Traded Funds. The price of a closed-end fund depends on investor supply and demand, buy will gravitate toward the fund's NAV.

Synonyms: Closed fund, Exchange traded fund, Investment company
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