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...
Closed-end funds (or closed-ended funds) are mutual funds with a fixed number of shares (or units). Unlike open-end funds, new shares/units in a closed-end fund are not created by managers to meet demand from investors. Instead, the shares can only be purchased (and sold) in the mar...
Open-end mutual funds price their shares only once a day, at the end of the trading day, basing the price on thenet asset valueof the portfolio. The stock price of a closed-end fund fluctuates according to the usual forces of supply and demand and the changing values of the fund's ho...
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 ...
investors to regularly assess the fund's underlying value. However, as noted, a CEF's market price can differ significantly from its NAV. CEFs can trade at a premium (above NAV) or discount (below NAV) in the market, a key characteristic distinguishing them from open-end mutual funds. ...
Closed end funds may have high dividend yields and could be trading at a discount to NAV. Download a free list of 117 closed end funds.
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...
Open-End Fund vs Closed-End FundThere are two main mutual fund structures: open-end fund vs closed-end fund. The open-end fund can issue new units and buy back existing ones at the current net asset value per share, but a closed-fund doesn’t. The number of units in case of the ...
This can be a problem for investors, but we overcome it by being patient and buying when others are selling and selling when others are buying. Utilizing limit orders lets you wait for the shares to come to you. Prospectus: Unlike mutual funds, closed-end funds only have to issue a ...
How Closed End mutual funds are Priced Much like with open-end funds, closed-end funds have a calculated NAV (total value of underlying investments divided by number of shares). However, this is often not what the shares are priced at. Since shares are traded on the open market, the shar...