Publicly-Traded Fund

Publicly-Traded Fund Is different from a mutual fund because it does not redeem shares in the same manner. There are always a predetermined number of shares that are outstanding, so it will act similar to a stock. There is a public offering of the shares of the fund and after this original period, the shares are free to be sold on the stock exchange. Also, the cost of the shares of the publicly-traded are fund are determined entirely by their market demand, which makes it possible to sell shares for a premium when the demand is high. This is also referred to sometimes as a closed-end fund.