Closed-End Investment Company

Closed-end Investment Company - Closed-end investment companies are businesses devoted to the supervision of investments that involve a limited issue of shares for sale and distribution. The management investment company will deal in seasoned securities as well. Generally, the closed-end investment company does not convert any outstanding shares. The closed-end investment company will utilize a secondary substitute or an over the counter market. Investors conduct business with a closed-end investment company because it is possible to come across a great offer. The shares sold for a reduced price than the book value and the shareholder has reason to believe shares will hold their value.