A type of investment company that offers a set number of shares that are traded on a stock exchange in the same manner as equities. The fund is managed according to its investment objectives and may invest in stocks, bonds, or a combination of both. Closed-end funds issue a fixed amount of shares through an initial public offering. In contrast, open-ended funds are commonly called mutual funds. Open-ended funds constantly offer new shares for sale and redeem shares at the end of any business day at a price of net asset value that is calculated at the end of each trading day. Closed-end funds can be bought or sold throughout the business day at a market price that may be above or below their net asset value, which fluctuates according to demand.