04 What is a "closed-end fund" vs. an "open-end fund"?
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This article is from the FAQ, by with numerous contributions by others.
04 What is a "closed-end fund" vs. an "open-end fund"?
A closed-end fund has a fixed number of shares outstanding and is
traded just like other stocks on an exchange or over the counter.
The more common open-end funds sell and redeem shares at any time
directly to shareholders. Sales and redemption prices of open-end
funds are fixed by the sponsor based on the fund's net asset value;
closed-end funds may trade a discount (usually) or premium to
net asset value.
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