closed-end fund

A pooled investment fund that has a fixed capitalization after the initial issue. Unlike open-end funds, closed-end fund shares are traded on an exchange. Closed-end fund shares have both a net asset value and a share price, and sometimes trade at discounts or premiums to net asset value. They are actively managed by professional investment advisers. Closed-end funds invest in securities in a wide variety of categories—including both stocks and bonds—but the largest category is municipal bonds.