such funds trade at a discount. If the market price of a closed-end fund happens to be greater than NAV, it trades at a premium. Open-end funds do not suffer the problem shares trading at discounts because their investors can always purchase or redeem shares at whatever the current NAV ...
Investor Tax-Trading Opportunities and Discounts on Closed-End Mutual Funds Discounts on closed-end mutual funds are a puzzle to financial economists, because arbitrage activities should eliminate discounts in a perfect capital mar... Kim,Chang-Soo - 《Journal of Financial Research》 被引量: 71...
When closed-end funds trade at a discount to NAV, they can give investors the opportunity to profit from the closing of that discount. Some professional investors even specialize in buying closed-end funds trading at discounts and then liquidating the fund’s assets to profit off the difference...
At the same time, if the shares are selling at less than the net asset value, the fund is said to be trading at a discount. Before choosing to assume the discounted price is worth taking advantage of, the investor should look more closely at the closed-end fund. If there are indication...
If the share price is less than the net asset value, the shares are said to be trading at a "discount." This is typically portrayed with a minus sign, "-2%." The closed-end structure also has other implications Unlike with open-end mutual funds, a closed-end fund manager does not ...
, FX Street and others. Investing strategies are based on technical and fundamental analysis of all the major asset classes (stock indices, currencies and commodities). Trade ideas are generally based on time horizons of one to six months. ...
Closed-end funds “usually trade at a discount to NAV. While it is attractive, in theory, to pay 90 cents for a dollar of assets, investors might never see the extra dime,”Barron’sreported. Are closed-end funds a good investment?
For instance, if a CEF is trading at a 15% discount, people often tout this as an opportunity to buy $1.00 of assets for $0.85. The unstated premise is that eventually the price will reach $1.00. This is problematic. Nothing mandates that a share price, even discounted at 15% to ...
METRO CHICAGO, Ill., Dec. 1, 2023/ PRNewswire/-- Calamos Investments ®* has announced monthly distributions and sources of distributions paid in December 2023 to shareholders of its seven closed-end funds pursuant to the Funds' respective distribution
Suppose the CEF's market price falls to $8 per share; it's trading at a 20% discount (8 / 10 - 1 = -0.2). This discount could be a buying opportunity for those who believe the underlying assets are undervalued. The Closed-End Fund Puzzle ...