Closed-end Fund
A closed-end fund is a publicly traded investment fund with a fixed number of shares. These shares trade on stock exchanges, and the fund’s price fluctuates based on supply and demand, rather than the fund’s net asset value (NAV). Closed-end funds are used for a wide variety of investment strategies, including equities, bonds, and real estate, offering liquidity and access to diverse markets for retail and institutional investors.
Key Takeaways
- Fixed number of shares traded on stock exchanges.
- Price is determined by market demand, not NAV.
- Used for various investment strategies, including bonds and real estate.
- Offers liquidity and access to diverse markets.
