| Closed-end Fund |
A closed-end fund is one of three basic types of professionally managed investment companies along with open-end funds (more commonly known as mutual funds), and unit investment trusts. Closed-end funds have a fixed number of shares outstanding. Following an initial public offering, those shares trade throughout the day on an exchange between investors. Share prices are determined by the forces of supply and demand and can be more or less than the fund's net asset value (NAV). This differs from open-end funds, which continuously offer their shares to investors and whose share prices are based on their NAV, determined at the close of each business day.
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