Investment trust

Fund with a limited number of outstanding shares

Investment trusts are closed-end funds, and thus issue a limited number of shares. Once this number has been reached, the fund is closed. The investment company is not obligated to buy back shares, although investors can sell their shares on the stock exchange if the investment company refuses to redeem them. Closed-end funds are especially popular in the US and the UK.

Synonym: Closed-end fund

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