Close-end mutual funds are created by gathering money from investors. However, unlike an open-end fund, close-end funds are traded freely on an exchange such as EGX.

These funds tend to behave as a common stock. After the fund’s inception, investors could only exchange certificates via the stock exchange.

This means that the total size of the closed-end fund does not change with investor activity. Thus, an investor willing to sell or buy certificates of closed-end fund has to submit an order to the member firm or brokerage firm, similar to the procedure used by the investor to purchase or sell shares.

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