2nd October 2019

wikipedia
8

What is an open ended fund?

Open-end fund (or open-ended fund) is a collective investment scheme that can issue and redeem shares at any time. The term contrasts with a closed-end fund, which typically issues at the outset all the shares that it will issue, with such shares usually thereafter being tradable among investors.

So, what is a closed ended fund?

A closed-end fund is organized as a publicly traded investment company by the Securities and Exchange Commission (SEC). Like a mutual fund, a closed-end fund is a pooled investment fund with a manager overseeing the portfolio; it raises a fixed amount of capital through an initial public offering (IPO).

What is an open end fund and closed end fund?

After its IPO, the CEF's shares trade on an exchange; just like a stock, the price of the fund's shares is determined by supply and demand. An open-end (mutual) fund also invests in stocks and/or bonds, depending on its investment objectives, but unlike a CEF, investors purchase shares directly from the fund itself.

What is open and closed end credit?

Obtaining closed-end credit is an effective way to establish a good credit rating and demonstrates that the borrower is creditworthy. Generally, real estate and auto loans are closed-end credit, but home-equity lines of credit and credit cards are revolving lines of credit or open-end.
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