Talk:Closed-end fund

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[edit] Removal

I removed this:

"CEFs are usually considered a subset of the ETFs, or exchange-traded funds, although there are closed-end funds that don't trade on any exchange. The newer ETFs such as QQQQ and SPY are not strictly closed-end funds, since the fund managers do create and destroy shares in huge blocks from time to time."

Because:

1. Closed-end companies can issue more shares or buy back their shares. This paragraph is therefore misleading.
2. Also ETFs are a modern innovation to duplicate some aspects of open-ended funds and some aspects of listed stocks. It is misleading and confusing to imply that they are a subset of CEFs. --Simon West 10:58, 16 November 2005 (UTC)

[edit] Suggestions

• Merge the Premium and Discount section.
• Comparison section needs to be split into advantages and disadvantages, even if only at the paragraph level. Likewise, there are a few hints of disadvantages, but they aren't really brought into clear relief here- there must be at the very least some perceived disadvantages to explain why investors do not take advantage of the higher returns- obscurity? complexity? illiquidity? too long a lock-in of funds?
• Examples? It might be helpful to devote a section to detailing an actual closed-end fund- ie. describe its IPO, its operations, trading of shares on markets, and final liquidation and achievements. As it is, this is not really clear as to what makes closed-end funds so different; it seems to focus more on their peculiarities. --maru (talk) Contribs 22:37, 8 January 2006 (UTC)

[edit] Preferred shareholders?

I've traded CEFs for a number of years in the US markets, and never heard of preferred shareholders in CEFs, and never seen preferred shares listed for CEFs. Is this an important enough topic to include here? Of course regular open-end mutual funds have preferred shares, and regular stocks do, but CEFs? Potzy 11:21, 17 December 2006 (UTC)

AFter the long discussion of preferred shareholders and common shareholders, there is a statement: "One additional characteristic of closed-end funds is that they rarely have classes of shares." This seems clearly inconsistent with the previous text. I suggest deleting the discussion of preferred shareholders, or moving it to a separate section, and it's not a basic characteristic of most CEFs. Potzy 11:26, 17 December 2006 (UTC)