Understanding Closed End Funds (CEFs)

A closed-end fund is a publicly traded investment company that invests in a variety of securities such as stocks and bonds. The fund raises capital primarily through an initial public offering (IPO). CEF shares and the proceeds are invested according to the fund’s investment objectives. “Closed” refers to the fact that, once the capital is raised, there are typically no more shares available from the fund sponsor and the issuance of new shares is closed to investors. Read more of this post

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Understanding Closed End Funds (CEFs)

 

A closed-end fund is a publicly traded investment company that invests in a variety of securities such as stocks and bonds. The fund raises capital primarily through an initial public offering (IPO). CEF shares and the proceeds are invested according to the fund’s investment objectives. “Closed” refers to the fact that, once the capital is raised, there are typically no more shares available from the fund sponsor and the issuance of new shares is closed to investors. Read more of this post

Some Basics on Closed End Funds (CEFs)

A closed-end fund is a publicly traded investment company that invests in a variety of securities such as stocks and bonds. The fund raises capital primarily through an initial public offering (IPO) and then this capital¬†is invested according to the fund’s investment objectives. “Closed” refers to the fact that, once the capital is raised, there are typically no more shares available from the fund sponsor and the issuance of new shares is closed to investors.

After the IPO, most closed-end funds are listed on a national exchange where the fund’s shares are purchased and sold in transactions with other investors, not with the sponsor company itself. Investors wishing to purchase or sell shares of a closed-end fund simply post their bids or offers via an exchange such as the New York Stock Exchange (NYSE) or the NASDAQ, just like a stock or an ETF. Read more of this post