Closed-End Funds vs. Open-End Fu…
https://www.investopedia.com/financial-edge/0712/closed-end-vs.-open-end-funds.aspx
Key Takeaways Open-end funds are mutual funds, while closed-end funds are traded on an exchange. Open-end funds issue new shares whenever an investor buys them, while closed-end funds issue only a set number of shares. Open-end funds are sold directly to investors by a fund company, while closed-end funds are offered by an investment company through an initial public offering. Open-end funds buy back shares when an investor sells them back, while the only way to get into a closed-end fund later is to buy some of those existing shares on the open market. Closed-end funds are considered riskier because most use leverage, while open-end funds may represent a safer choice. There are significant differences in the structure, pricing, and sales of closed-end funds and open-end funds.
Open-end funds are mutual funds, while closed-end funds are traded on an exchange.
Open-end funds issue new shares whenever an investor buys them, while closed-end funds issue only a set number of shares.
Open-end funds are sold directly to investors by a fund company, while closed-end funds are offered by an investment company through an initial public offering.
Open-end funds buy back shares when an investor sells them back, while the only way to get into a closed-end fund later is to buy some of those existing shares on the open market.
Closed-end funds are considered riskier because most use leverage, while open-end funds may represent a safer choice.
There are significant differences in the structure, pricing, and sales of closed-end funds and open-end funds.
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