closed-end fund
1
7.2
- noun
- /kloʊzd ɛnd fʌnd/
- Specialized
:
fondo cerrado
- closed-end fund
- closed-end fund trades
- funds that invest
Examples
-
In contrast, there's things called closed end funds, which are similar but they don't have the creation units.
-
Among other things, it expects to scoop up closed-end municipal-bond funds in the next year or so when the predicted apocalypse arrives, driving fund prices down, he says, to as little as 40% of net asset value.
Blog text (6) -
Investing in a closed-end fund allows you to purchase shares that trade on a stock exchange.
-
A closed-end fund typically has a set number of shares, making it different from open-end funds.
-
Unlike open-end mutual funds, a closed-end fund does not continuously offer new shares to investors.
Synonyms
A company that issues a fixed number of shares which are traded on a stock market
How Illicit
Surface Forms
Morphology
closed-end + fund
The compound 'closed-end' plus 'fund' lets a learner infer broadly that this is a fund that is 'closed' or not openly redeemable, so someone who knows 'closed' and 'fund' can grasp a general sense of restriction. However, the specific technical meaning (a fund with a fixed number of shares traded on an exchange and not redeemable from the issuer) is specialized and not fully predictable from the parts, making the term partially but not fully transparent to B1 learners.
Etymology
Closed-end fund The noun closed-end fund comes from the idea that the fund is closed after it sells shares and has a fixed end, meaning a set number of shares. Because it does not make new shares, the existing shares are 'traded on the stock market', so the term means an investment with a 'fixed number of shares' that people buy and sell like stocks.