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What Is a Closed End Fund?

By Jason Hall – Updated Aug 23, 2024 at 10:07AM

Key Points

  • Closed-end funds raise capital in an IPO and don't continuously accept new investments.
  • They can trade at prices far from their asset value, influenced by market demand and leverage use.
  • Investing in closed-end funds includes risks like leverage amplifying losses and market concentration.
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