- 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."
fixed number, investment funds, 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.