A closed-end fund's fixed number of shares cannot be redeemed by investors. Shares, on the other hand, are traded on a public exchange. When a fund "closes," it means that all new shares have been sold, and no new shares or money have been added to the fund. Unlike an open-ended fund, its price is determined by the fund's supply and demand rather than its net asset value (NAV).

Investors seeking fixed-income are drawn to closed-end bond funds because many of them provide a consistent stream of income.

A closed-end fund (CEF) is a type of investment vehicle that pools money from investors to buy a portfolio of stocks, bonds, or other assets. Unlike open-end mutual funds, which issue and redeem shares continuously, a closed-end fund issues a fixed number of shares through an initial public offering (IPO). These shares then trade on stock exchanges like individual stocks, meaning their prices fluctuate based on supply and demand rather than just net asset value (NAV). This can lead to shares trading at a premium or discount to NAV. CEFs often use leverage to enhance returns and typically pay regular dividends. They are popular for income-focused investors seeking exposure to specific sectors, bonds, or alternative assets while benefiting from potential market inefficiencies due to their unique pricing structure.