What is CLOSED-END MUTUAL FUND?

Mutual fund with a set limit of shares available to investors or a set limit of monies or stock-types. Transactions in the shares of such funds are based on their market price. If the share price is above the offering price, it is at a premium. If the share prices is below the offering price, it is at a discount. The fund’s net asset worth, or NAV, is based on the number of shares times the current price. These shares may also traded on the stock exchanges. Called unit investment trust, or UIT, in the US and called unit trust in the UK and elsewhere. Contrast this to open-end mutual funds that continuously have new shares issued in response to investor demand.

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Related Legal Terms
CLOSED-END FUND, NO LOAD FUND, OPEN END MUTUAL FUND, MUTUAL FUND CASH-TO-ASSETS RATIO, BALANCED MUTUAL FUND, MUTUAL FUND SUBADVISOR, MUTUAL FUND CUSTODIAN, MUTUAL FUND, SOCIALLY CONSCIOUS MUTUAL FUND, GROWTH MUTUAL FUND


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