Closed-End Fund s

A closed-end fund. or CEF, is an investment structure (not an asset class ), organized under the regulations of the Investment Company Act of 1940. It’s often confused for a traditional open-end mutual fund that is closed to new investors, but this is not true.

closed-end fund

A type of investment fund that has a fixed amount of share capital and cannot issue or redeem units according to shifts in demand. Normally listed on the stock exchange. Called an investment trust in the UK. The opposite of an open-end fund (or unit trust in the UK).

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.

A closed-end fund is legally known as a closed-end management company. A closed-end fund issues a fixed number of shares, usually through a one-time public offering, after which time shares in the closed-end fund are traded on a stock exchange, and not directly from the fund.

CLOSED-END FUND — A closed-end fund sells a fixed number of shares to investors. Those shares sell on a.

CLOSED-END FUND S — A mutual fund that does not sell unlimited shares; one with a specific number of out.

Closed-end fund

A publicly traded investment company-a mutual fund-sold on a public stock exchange or over the counter. A closed end fund has a fixed number of shares that may trade above or below net asset value.

Closed-End Fund :

A fund company that issues a fixed number of shares. Its shares are not redeemable. but are bought and sold on the stock exchange or the over-the-counter market .

Common Equity.

Closed-End Fund. A fund whose value is held within a fixed number of shares. Until the fund is wound up, shares can be bought and sold on the stock exchange or the over-the-counter market.

Closed-end Fund A scheme of an investment company in which a fixed number of shares are issued. The funds so mobilized are invested in a variety of vehicles including shares and DEBENTURES. to achieve the stated objective, e.g.

closed-end fund. A mutual fund that issues a fixed number of total shares. Shares are traded from investor to investor on an exchange instead of being sold by the issuing company, and the share price changes based on supply and demand.

closed-end fund. A mutual fund which raises capital through the sale of a fixed number of shares with investors trading the shares in the open market, usually at a discount to its NAV to account for tax liabilities or liquidity concerns.

Closed-End Fund An investment fund that does not stand ready to purchase its own shares from its owners. Its shares can trade on an exchange.

Closing Price (alternatively close) The price at which the last trade took place on a given day in a particular security.

Closed-end fund

Closed-end mutual funds are actively managed funds that raise capital only once, by issuing a fixed number of shares. Like other mutual funds, however, fund manager s buy and sell individual investments in keeping with their investment objective s.

Closed-end Fund. A type of fund that has a fixed number of shares outstanding, which are offered during an initial subscription period, similar to an initial public offering. After the subscription period is closed, the shares are traded on an exchange between investors, like a regular stock.

Closed-End Fund — Mutual fund that does not accept new investments or withdrawals after its initial formation; essentially acts as a holding corporation for the purpose of investing in other public corporations. The typical closed-end fund trades on a major U.S.

closed-end fund Mutual fund with a fixed number of outstanding shares, which trade on a stock exchange.

closed-end mortgage bond A mortgage bond that protects the seniority of existing bondholders in the event that new bonds are issued.

Closed-end fund

This is an investment company which has a fixed number of shares. The shares trade on a stock exchange (such as TSX, NYSE, AMEX, etc) at market value.

See also mutual fund, open-end fund. exchange traded fund, and management expense ratio.

A closed-end fund that has a fixed term ination or maturity date.

Similar financial terms

Closed-end fund. A type of mutual fund with a fixed number of shares that trades on an exchange or over the counter. (Most mutual funds have an unlimited number of shares and are bought and sold directly through a financial consultant or mutual fund company.).

closed-end fund

type of fund that has a fixed number of shares usually listed on a major stock exchange. Unlike open-end mutual funds, closed end funds do not stand ready to issue and redeem shares on a continuous basis.

Closed-end fund

A closed-end fund is a fund with a set number of units available for sale. Unlike typical mutual funds, a closed-end fund trades on an exchange and its unit price fluctuates based on market demand in the same way a stock price does.

Commercial paper.

closed-end fund

A pooled investment fund that has a fixed capital ization after the initial issue. Fund shares are traded on an exchange (see open-end fund ).

Closed-end fund s differ from open-end fund s because they raise money only once in a single offering, much the way a stock issue raises money for the company only once, at its initial public offering, or IPO.

A closed-end fund regulated by the Investment Company Act of 1940. These funds have a fixed number of shares which are traded on the secondary markets similarly to corporate stocks. The market price may exceed the net asset value per share. in which case it is considered at a premium.

Two closed-end fund s, Madison Claymore’s and First Trust’s, have since been introduced, both benchmarked to the CBOE BMX.

In contrast, closed-end fund s are traded in the open market between investors and so the price of shares or interests in a closed-end fund will be whatever the parties agree it to be, which may not correspond to the fund’s NAV.

Closed-End Fund

List of mutual-fund families

Long-term Capital Management.

Open Your Eyes To Closed-End Fund s

NCUA-Insured Institution

A finance institution that is a participant of the National Credit Union Administration (NCUA) program. Most NCUA insured institutions are federal and state chartered credit union s and savings bank s.

Dual-purpose fund

A closed-end fund consisting of two classes of shares. The two classes are preferred shares. on which shareholders receive all the dividends and interest from the portfolio, and common shares, on which shareholders receive all the capital gains.

IPOs by investment companies (closed-end fund s) usually include underwriting fee s that represent a load to buyers. Initial Public Offering Spinning The practice of an investment bank setting aside portions of a corporation’s Initial Public Offering for senior management of that corporation.

Term trust A closed-end fund that has a fixed term ination or maturity date. Terminal value The value of a bond at maturity, typically its par value, or the value of an asset (or an entire firm) on some specified future valuation date. Usually, a perpetuity formula is used.

See closed-end fund. open-end fund. Investment Company act of 1940 Legislation establishing general regulations and investment standards for mutual funds. Investment grade Designating a bond suitable for purchase by institutions under the prudent man rule.

This means that the market prices of closed-end fund s are determined by supply and demand rather than set equal to the value of their assets by the fund manager s, as in open-end fund s.

Unlike open-end mutual funds, closed-end fund s do not stand ready to issue and redeem shares on a continuous basis. Price is determined by supply and demand.

The price of a security after the final trade at the end of the day.

Commercial paper.

The worlds largest stock exchange, based in New York and with a history traced back to 1792, with 2,700 companies, closed-end fund s and exch. (Read more)

By the year 1929, there were 700 closed-end fund s with 19 open-ended mutual funds. Thanks to the 1929 stock market crash, closed-end fund s lost their popularity and small open-end fund s started to skyrocket.

Term used interchangeably with closed-end fund . It is an investment company that issues a fixed number of shares and is listed on a major stock exchange. An investor who wishes to buy shares must purchase them from an investor who wishes to sell their shares.

price-NAV ratio (P/NAV): The market price of a closed-end fund divided by its net asset value (NAV). P/NAV serves as a valuation indicator. Closed-end fund s selling at a discount will have P/NAV ratios below 100%; those at a premium will have P/NAV ratios in excess of 100%.

Closed-end fund s have a fixed capital ization, and are usually listed and traded on the New York Stock Exchange like any other security, and may sell at a premium or discount to net asset value.

The capitalization of a closed-end fund usually remains constant and has a fixed number of outstanding shares. Open-end mutual funds sell their shares directly to investors, are ready to buy back their old shares at their current net asset value, and are not listed.

A portfolio of municipal bonds sponsored by registered investment companies that offer shares to investors either through (1) closed-end fund s or unit investment trust s, which offer shares of a fixed portfolio of municipal bonds; or (2) open-end or managed funds.

Term trust

Definition: [crh] A closed-end fund that has a fixed term ination or maturity date.

A mutual fund that trades on a stock exchange just like any other public corporation and has a fixed number of shares outstanding and do not continuously offer to buy back their shares. Assets in a closed-end fund are managed by an investment professional and diversified among many securities.

For a mutual fund, the net asset value per share usually represents the fund’s market price, subject to a possible sales or redemption charge. For a closed-end fund. the market price may vary significantly from the net asset value.

Source.

Fund manager s can create more shares, or reduce the total, according to demand from the public. A closed-end fund has a predefined and fixed number of shares available to the public.

Rights are often transferable, allowing the holder to sell them on the open market to others who may wish to exercise them. Rights offering s are particularly common to closed-end fund s, which cannot otherwise issue additional common stock.

The interest, principal repayments and accelerated payments would be passed on to the investors. These funds would not be retained by the fund for further investment. It is more nearly analogous to a closed-end fund and different from an open-ended fund.

So-called load fund s require a commission at purchase, while no-load fund s invest the entire amount. Open-end fund s increase or decrease in size as investors buy or redeem shares in the fund, while closed-end fund s have a limited number of shares and are publicly traded.

Related: open-end fund. closed-end fund. Mutual fund theorem A result associated with the CAPM, asserting that investors will choose to invest their entire risky portfolio in a market-index or mutual fund.