Closed-End Fund
A Closed-End fund is one with a limited number of shares. No new shares are issued after the fund is launched. An investor can purchase shares in a closed-end fund from a broker. The price of a closed-end fund is determined by the premium (or discount) placed on it by the market. The value of the securities in the fund divided by shares in the fund, is called NAV for net asset value. The premium or discount means that the market price is above (premium) or below (discount) the NAV. ETFs, or exchange-traded funds, make up a subset of closed-end funds.
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