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open-end investment company
(redirected from Open-End Companies)

   Also found in: Dictionary/thesaurus, Financial 0.01 sec.
open-end investment company: see mutual fund mutual fund, in finance, investment company or trust that has a very fluid capital stock. It is unique in that at any time it can sell or redeem any of its outstanding shares at net asset value (i.e.
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These product structures do not fall within the Securities and Exchange Commission's (SEC) definition of an ETF, which is posted on the Internet: "Exchange-traded funds, or ETFs, are investment companies that are legally classified as open-end companies or Unit Investment Trusts (UITs), but that differ from traditional open-end companies and UITs in several respects": These differences can be found at: www.
Closed-end investment companies differ from open-end investment companies (commonly referred to as "mutual funds") in that closed-end investment companies have a fixed capital base, whereas open-end companies issue securities redeemable at net asset value at any time at the option of the shareholder and typically engage in a continuous offering of their shares.
 
 
 
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