Closed-end Investment Company (Noun)
Meaning
A regulated investment company that issues a fixed number of shares which are listed on a stock market.
Classification
Nouns denoting groupings of people or objects.
Examples
- A closed-end investment company allows investors to buy and sell shares on a stock exchange, but the company itself does not issue new shares or redeem existing ones.
- The closed-end investment company's shares can trade at a premium or discount to their net asset value, depending on market demand.
- Investors can benefit from the diversification offered by a closed-end investment company, which can invest in a wide range of assets.
- The closed-end investment company's board of directors is responsible for overseeing the investment strategy and operations of the company.
- A closed-end investment company is subject to strict regulations and must comply with the rules of the relevant stock exchange and securities commission.