Why can closed-end funds sell at prices that differ from net value while open-end funds do not?
Close-end funds trade on the open market and are thus subject to market pricing. So, they can be sold at a price that is different from net value.
The open-end and closed-end are two types of managed funds that manage investment for a fee
The reason why close-end funds sell at prices that differ from their net value is because they trade on the open market and are thus subject to fluctuations in their price according to the fluctuations in the market. On the other hand, open end funds, are sold by the mutual fund and must reflect the NAV of the investments.
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