Closed-end Fund

Definition

  • A type of mutual fund where individual shares in the fund are sold to investors through an initial public offering. Unlike open-end funds, closed-end funds cannot be sold back to the fund, and likewise investors cannot buy additional shares directly from the fund. Instead, shares in the closed-end fund are listed on a stock exchange and are bought and sold like any other stock. Also known as a "closed-end mutual fund" or "closed-end investment."

Synonyms
investment funds, fixed number, traded funds, limited shares

Related Terms and Acronyms

  • Mutual Fund Definition,
    • A type of investment scheme that pools funds from multiple backers and invests them in securities such as stock or bonds.
  • Open-end Fund Definition,
    • A mutual fund that allows investors to buy or sell shares in the fund at their net asset value each business day.
  • Portfolio Definition,
    • A collection of investments.
  • Protected Fund Definition,
    • A mutual fund that guarantees investors a return on their investments.
  • Segregated Fund Definition,
    • Investment vehicles that feature both maturity and death guarantees. Segregated funds share similarities with mutual funds but are categorized as insurance products.
  • Stock Definition,
    • A share of the ownership of a company.
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