closed-end fund

A closed-end fund is a type of investment fund that raises a fixed amount of money through an initial stock offering. Once it’s established, the fund's shares are traded on stock exchanges like individual stocks, and their prices fluctuate based on supply and demand. Unlike open-end funds, which continually issue new shares or redeem existing ones at their net asset value, closed-end funds have a set number of shares. This structure can sometimes lead to the shares trading at a premium or discount to the fund’s actual value. They often focus on specific investment strategies, such as bonds or international stocks.