Investment fund in the form of a publicly traded investment company. It collects money from investors through an initial public offering and uses this money to invest in securities. Contrary to an open-end fund, a closed-end fund does not issue shares continuously, nor is it obliged to repurchase shares at their net asset value. The shares of closed-end funds, like equities, trade on a stock exchange. The price at which the shares trade is called the market price. This may exceed (premium) or be less than (discount) than the net asset value.