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Open-end Fund
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Closed-end Fund
Term category: Mutual Funds
In 10 words or less: A type of mutual fund that is traded like a stock on a stock exchange.

Definition: A closed-end fund is one that issues a fixed number of shares.  These shares are traded on stock exchanges in a similar fashion to stocks.

StockJargon Advice: If you're planning on investing in closed-end funds, you should understand that--unlike open-end funds--their price is derived from supply and demand rather than the assets underlying the portfolio.  Because of this, the closed-end fund market is often seen as inefficient from a pricing standpoint.

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Morningstar Guide to Mutual Funds by Christine Benz
Common Sense on Mutual Funds by John Bogle
Mutual Funds for Dummies by Eric Tyson
Morningstar Funds 500 By Morningstar Analysts

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