Mutual funds in which a fixed number of nonredeemable shares are sold at an initial offering and are then traded in the over-the-counter market,like shares of common stock,are called

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Close-end funds are mutual funds in which a fixed number of nonredeemable shares are sold at an initial offering and are then traded in the over-the-counter market, like shares of common stock. Open-end funds, on the other hand, issue and redeem shares on demand at their net asset value. OTC funds and primary-issue funds are not commonly used terms to describe mutual funds.

Mutual Funds in Which a Fixed Number of Nonredeemable Shares