Home     About Us    Contact Us     Contribute     Privacy
Investing
Stocks
Bonds
Mutual Funds
Biz
Credit
Career
College
Economics
Tax
More
 
 
Marketplace
Related Articles
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Spend Less Than You Earn

Spend Less Than You Earn - To spend less than you earn, basically, means to live within your means. In other words, if you don't have the cash to...

read entire tip

Recently Added
Other Great Sites
 

Best Closed End Funds

When seeking a stable income vehicle, more people are investing in closed end funds. A closed end fund is a fund that raises capital by issuing shares through an initial public offering, or IPO. Once all of the shares in the IPO are sold, the fund is closed to new investments by the sponsor company. The fund is listed on a national exchange, and the fund’s shares are bought and sold in transactions with other investors, not with the sponsor company itself. It is bought and sold just like a stock. If an investor does not purchase shares in the fund when the initial public offering was made, he or she will not be able to purchase shares later from the company. The investor will have to search for a shareholder who already holds shares in that fund and purchase them. This can make investing in closed end funds very difficult.

The best closed end funds are funds that allow the buyer to purchase then at prices lower than the net asset value and then sell them at a higher value in the future. The price of a closed end fund is influenced more by supply and demand than the net asset value. A closed end fund with a high demand and low supply will be easier to sell at a higher price than a closed end fund with a low demand and high supply. Another factor that will separate the best closed end funds from the rest is the brokerage fee. The brokerage fee, or load, tends to be high because it offsets the fact that no further investment is occurring. Since the fund is closed end, the mutual fund company does not have to buy back the shares it sold. This limits the liquidity of the fund. In order to redeem shares, the investor would have to find another investor who would be willing to buy the shares at the price the closed end fund shareholder sets.

The investing strategy of the best closed end funds will depend upon the investor’s needs. People who require reduced taxes on income may choose a closed end fund that uses a tax-fee income strategy, which invests mainly in municipal bonds. The best closed end funds can be purchased for less than its net asset value, has a low supply and high demand, and charge a low brokerage fee. Diligent research that can be conducted on many financial web sites and quality advice from an experienced financial advisor will help an investor find the best closed end funds for their needs.

Discuss It!

No Credit Check Financing said:

Right away the positioning may possibly unquestionably have renowned among the most with writing individuals, due to its meticulous write-ups or significant assessments.

another eden hack apk said:

Without difficulty these pages may glimmer potentially often be famous concerned with lots of blogs and forums men and women, due to its meticulous content and also beliefs.

hack instagram said:

Soon the page may perhaps irrefutably finally end up mythical in the middle every last posting lots of individuals, by reason of rigorous article content together with critical reviews together with recommendations.

sms bomber said:

I really like your blog. Great article. It's most evident, people should learn before they are able to

myaarpmedicare said:

Excellent Blog! I have bookmarked your online journal, the articles are path superior to anything other comparable web journals.. a debt of gratitude is in order for an extraordinary online journal!

derma folia said:

I really like your blog. Great article. It's most evident, people should learn before they are able to

IPL 2019 said:

Good composed article. It will be steady to any individual who uses it, including me. Continue doing what you are doing â can'r hold up to peruse more posts.

voyance serieuse said:

A fascinating dialog is value remark. I feel that it is best to compose more on this matter, it may not be an unthinkable theme however generally people are insufficient to chat on such subjects. To the following. Salud.

oranda wen growth said:

Particular interviews furnish firsthand message on mart size, industry trends, ontogeny trends, capitalist landscape and outlook, etc.

Most Popular Articles
Most Popular Definitions
 
Daily Definition

Definition of the Day Diversification

Definition: The concept of spreading your money among a number of different investments in order to reduce risk.  It's the idea that you ...

read entire definition

 
 

 

 

Home     About Us    Contact Us     Contribute     Sitemap

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Copyright © 2009 TeenAnalyst.com