Closed-end fund

Closed-end fund (or closed-end investment or closed-end company) – A collective investment with a limited number of shares. It is a publicly traded investment company that raises a prescribed amount of capital only once through an initial public offering (IPO). The shares are listed and traded on an exchange. Stocks of a closed-end fund represent an interest in a specialized portfolio of securities. The portfolio is managed by an investment adviser. The securities in the portfolio typically concentrate on a specific industry, geographic market or sector. The stock price of the fund fluctuates with the changing values of the securities in the fund’s holding, and as shares of the fund are bought and sold.