26. Close End Mutual Funds
L1 30 ClosedEnd Mutual Funds V3
Closed End Funds
Closed End Funds accept investors at the start of the fund, and do not take new investments nor handle redemptions afterward. This means that the closed end fund does not need to keep cash for liquidity purposes or to handle redemptions. Investors who wish to stop investing in the fund may sell their shares to other investors on a stock exchange, the same way they would sell stocks.