Definition of Closed end Investment Company

Closed-end-investment-company is a management company that issues a fixed number of shares to investors in an managed portfolio and whose shares are traded in the secondary market.

Applying "Closed end Investment Company" to Securities Exams:

Investors may purchase and sell shares of a closed end investment company at any time on the exchange and pay a commission to the broker for executing the order. This is a significant difference between an open end fund which must be purchased from the fund company and redeemed to the fund company.

Preparing for an Exam?

Receive 15% off all your Securities Exam Prep materials

Please wait....