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A closed-end mutual fund has a fixed number of shares and is usually listed on a major stock exchange. Whereas open-ended mutual funds are valued strictly on the basis of their NAV (Net Asset Value), which is the market value of all the stocks held by the fund, the shares of closed-end funds trade like stock and usually sell at a discount or premium to NAV, because the shares are subject to the pressures of supply and demand on the open market.

A simple example of how a closed-end fund works:

1. The fund management begins with a finite amount of cash.
2. They buy stocks based on the fund objectives using all the money they have.
3. They issue stock in the fund.
4. The stock is traded just like any other stock on an exchange. There is a bid and ask, and the shares can be traded intraday.
5. Closed-end fund prices are listed in the stock listings rather than in the mutual fund listings.

ASA, Ltd. (ASA) and Central Fund of Canada (CEF) are both closed-end funds.

Barron's lists all closed-end funds each week in a separate listing showing the amount of premium or discount to NAV for each fund.