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Investment trust

• A closed-end fund regulated by the Investment Company Act of 1940. These funds have a fixed number of shares which are traded on the secondary markets similarly to corporate stocks. The market price may exceed the net asset value per share, in which case it is considered at a premium. When the market price falls below the NAV/share, it is at a discount. Many closed-end funds are of a specialized nature, with the portfolio representing a particular industry, country, etc. These funds are usually listed on US and foreign exchanges.

• Commonly known as a Closed-End Fund. Closed-end funds invest in other securities (like a Mutual Fund) but have a fixed number of shares and are traded similarly to stocks. The market price may exceed the Net Asset Value (NAV) per share, in which case the fund is selling at a Premium. When the market price falls below the NAV, the fund is selling at a Discount.

 
 

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