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Finance Dictionary and Glossary of Investment Terms
Closed-end fund
Definition 1.
An investment company that sells shareslike 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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Definition 2.
A fund with a fixed number of shares outstanding, and one which does not redeem shares the way a typical mutual fund does. Closed-end funds behave more like stock than open-end funds: closed-end funds issue a fixed number of shares to the public in an initial public offering, after which time shares in the fund are bought and sold on a stock exchange, and they are not obligated to issue new shares or redeem outstanding shares as open-end funds are. The price of a share in a closed-end fund is determined entirely by market demand, so shares can either trade below their net asset value ("at a discount") or above it ("at a premium"). also called closed-end investment company or publicly-traded fund.
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Definition 3.
A closed-end fund is a mutual fund whose shares trade from investor to investor on an exchange like individual stocks. Closed-end mutual funds raise money only once and offer only a fixed number of shares. Most mutual funds are open-end funds, and sell as many shares as investors want. Investors who want to sell redeem their shares through the fund.
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