Closed-end funds definition

Closed-ended funds, like public limited companies, receive investments by issuing a limited number of securities placed through IPOs, which are subsequently traded on the stock exchange.

The price of closed-end securities is determined not by the total value of the assets but by the investors' demand for the securities. Low demand forces the closed-end fund to sell equities at a discount compared to the NAV's net asset value.


Related words

Central Bank・ Conversion・ Cross Rates・ Cable・ Candlestick Chart・ Capital Markets・ Chartist・ Closed Position・ Consumer Sentiment Index・ Closed-end funds・ Call・ Call Option・ Calmar ratio・ Candlestick Charts・ Candle・ Capping・ Commission・ Commercial paper・ Closing range・ Chaos Theory・ Chaikin oscillator