Closed-End Fund

Business, Legal & Accounting Glossary

Definition: Closed-End Fund

Closed-End Fund

Quick Summary of Closed-End Fund

A fund with a fixed number of shares outstanding, and one which does not redeem shares the way a typical mutual fund does. Closed-end funds behave more like stock than open-end funds: closed-end funds issue a fixed number of shares to the public in an initial public offering, after which time shares in the fund are bought and sold on a stock exchange, and they are not obligated to issue new shares or redeem outstanding shares as open-end funds are. The price of a share in a closed-end fund is determined entirely by market demand, so shares can either trade below their net asset value (“at a discount”) or above it (“at a premium”). also called closed-end investment company or publicly-traded fund.

What is the dictionary definition of Closed-End Fund?

Dictionary Definition

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. ETFs, or exchange-traded funds, make up a subset of closed-end funds.

Full Definition of Closed-End Fund

A closed-end fund is legally known as a closed-end management company.

A closed-end fund issues a fixed number of shares, usually through a one-time public offering, after which timeshares in the closed-end fund are traded on a stock exchange, and not directly from the fund. A closed-end fund differs from a mutual (open-end) fund, which continuously issues new shares. A closed-end fund also differs from a mutual fund in that it may issue senior securities such as preferred stocks or bonds. The price of a share in a closed-end fund is determined entirely by the market and is not directly related to the NAV per share. Shares of a closed-end fund may sell at a discount or premium to the NAV. The process of buying or selling shares of a closed-end fund is identical to the purchase or sale of any other listed stock. Closed-end mutual funds are actively managed.

Synonyms For Closed-End Fund

closed-end investment company
publicly-traded fund

Cite Term

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Modern Language Association (MLA):
Closed-End Fund. Payroll & Accounting Heaven Ltd.
January 26, 2022
Chicago Manual of Style (CMS):
Closed-End Fund. Payroll & Accounting Heaven Ltd. (accessed: January 26, 2022).
American Psychological Association (APA):
Closed-End Fund. Retrieved January 26, 2022
, from website:

Definition Sources

Definitions for Closed-End Fund are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 21st November, 2021 | 4 Views.