Open-End Management Company
A company that distributes and redeems securities it issues. The most common open-end management companies are mutual fund companies which sell and redeem shares at the net asset value per share. Investopedia Says:
This is just a fancy legal name for a mutual fund. An investor in an open-end fund essentially pools his/her money with other investors in order to attain economies of scale, professional management, etc.
This differs from a closed-end fund which has a limited number of shares available. Unlike with open-end funds, an investor in a closed-end fund typically sells his/her shares on the open market to another investor instead of back to the fund company. Related Terms:
Closed-End Investment
Economies Of Scale
Mutual Fund
Net Asset Value - NAV
Open-End Fund
Outstanding Shares
Redemption |