What are closed-end funds?
Closed-end funds are professionally managed investment companies that offer investors a variety of ways to generate income through portfolio performance, as well as distribution of investment income and net realized capital gains.
Closed-end funds have a fixed number of shares outstanding and are publicly traded. Transactions in shares are based on their market price as determined by the forces of supply and demand in the marketplace. The price of closed-end funds may be above (at a premium) or below (at a discount) the fund's Net Asset Value (NAV).