closed-end investment company

closed-end investment company definition - business

closed-end investment company

An investment company that issues a limited number of shares and does not redeem those that are outstanding. Shares of closed-end investment companies trade on the exchanges or in the over-the-counter market. Thus, like stock of other publicly traded companies, share prices are determined by the pressures of supply and demand rather than by the value of underlying assets. Also called publicly traded fund. Compare mutual fund. See also regulated investment company.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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