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investment chapter 12 (Factors in Comparing Mutual Funds (Closed-End or…

- - - - Brokerage commissions apply to closed-end funds
      - Open-end funds have greater liquidity
      - Closed-end funds trade at premium (or discount) to NAV
        
        Avoid closed-end funds trading at premium
        
        Look for closed-end funds trading at discount
- - - - which cover the costs of buying and selling shares as well as the administrative cost of running a fund ( like a commission )
    - - whether the fund has a good year or a bad year.
  - - - Usually, the management firm also serve as investment adviser
    - - 3 parties involved : The Money Manager, Investment Adviser and Traders.
    - - Direct to the public
      - Through brokers
- - - - Subsequent trades are done in a secondary market, similar to the common stock market