What is the difference between open ended and close ended funds?

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Accepted Answer

Open ended funds allow investors to buy and sell shares at any time, while close ended funds have a fixed number of shares and are traded on the stock exchange.

Open ended funds allow investors to buy and sell shares at any time, based on the net asset value (NAV) of the fund.
Close ended funds have a fixed number of shares issued through an initial public offering (IPO) and are traded on the stock exchange like stocks.
Open ended funds are not traded on the stock exchange, while close ended funds are listed and traded like stocks.
Open ended funds can issue new shares to meet investor demand, while close ended funds do not issue new shares after the IPO.
Examples: Vanguard Total Stock Market Index Fund (open ended) vs. BlackRock Capital and Income Fund (close ended)

What is the difference between open ended and close ended funds?

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