How do closed-end funds differ from open-end funds?
Open-end and closed-end funds invest largely in the same manner. The primary difference lies in how the shares are bought and sold. Unlike open-end funds, which have an unlimited number of shares available, closed-end funds have a fixed number of shares offered once in an initial public offering (IPO). Following the IPO of a closed-end fund, shares can be traded on a public exchange or over-the-counter, much like shares of stock.
