Mutual funds offer new shares or buy them back from investors each day at the net asset value of their holdings.
The closed-end funds are different; though they also invest in common stocks or bonds. Once their own stock is issued, they trade daily on the market. However, closed-ends are not comparable to exchange-traded funds or ETFs.
The closed-end funds do not issue new shares. The investor buys those already on the market. They are not bought and sold at net asset value. The market prices are either above or below their net asset value or NAV, depending on each fund’s situation, holdings and market conditions.
The clesed-end appeal is usually because of earnings leverage, with the inclusion in their portfolios of debt, sometimes short-term.(See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)
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