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A closed-end fund is a type of investment company whose shares are listed on a stock exchange or traded in the over-the-counter market. The assets of a closed-end fund are professionally managed in accordance with the fund’s investment objectives and policies, and may be invested in a wide variety of domestic and international securities, including common stocks, preferred stocks, high-yield bonds, municipal bonds, and corporate bonds. The market price of closed-end fund shares fluctuates like that of other publicly traded securities and is determined by supply and demand in the marketplace. They generally issue a fixed number of common shares that are listed on a stock exchange. Once issued, a closed-end fund’s common shares typically are not purchased or redeemed directly by the fund, but instead are bought and sold in the open market.

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