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Closed-End Funds have a few differences from the traditional Open End Funds. First of all, they trade just like a stock
throughout the regular trading sessions. They do not have just one price posted at the endo of the day based on Net Asset Value
like the open end funds. They are free to trade based on market conditions. These Funds typically trade below their Net Asset Value.
Therefore, you would believe you are buying your investments at a discount. This may be true, but don't expect the fund
to magically start trading above NAV after you buy it.
There are about 500 plus Closed-End Funds traded on the market. Some specialize in certain sectors and others
are diversified across the general market.
Below are the links into websites that contain information on Closed-End Funds:
Closed-End Fund Association (CEFA)
The Closed-End Fund Association (CEFA) is the national trade association representing the closed-end fund industry. A not-for-profit association, CEFA is committed to educating investors about the many benefits of these unique investment products and to providing a resource for information about its members and their offerings. Closed-End Funds Center Weekly Review of Closed End Funds Closed-End Funds From SEC.gov - A "closed-end fund," legally known as a "closed-end company," is one of three basic types of investment company. The two other basic types of investment companies are mutual funds and Unit Investments Trusts (UITs). A Guide to Closed-end Funds (PDF File) A closed-end fund is a type of investment company whose shares are listed on a stock exchange or are traded in the over-the-counter market. The assets of a closedend fund are professionally managed in accordance with the fund’s investment objective and policies, and may be invested in stocks, bonds, or a combination of both. Like other publicly traded securities, the market price of closed-end fund shares fluctuates and is determined by supply and demand in the marketplace. The Insider's Guide to Closed-end Funds With closed-end funds you can do two amazing and unique things that you just can’t do with other assets…Simply put, you can, 1. Exploit market irrationality 2. Make huge profits regardless of whether we’re in a bull market or a bear market… Closed-End Fund Report Lsiting of Closed End Funds and their daily price performance. Also includes links to their profiles and whether they are currently trading above or below Net Asset Value (NAV). A Helping Hand for Closed-End Fund Investors The "Orphans" we adopted in the past several weeks have done pretty well. Here is a breakdown of their performance as of the close of trading Closed-End Funds at the American Stock Exchange The American Stock Exchange lists more than 148 closed-end funds, ranging from single-state tax-free bond funds to global equity funds, valued in excess of $27 billion in total assets. A fund worth more than its parts Closed-end funds can offer a steady stream of income, often at a discount. But researching these critters can be tricky.
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