Closed-end funds, often called closed-end mutual funds, are investment vehicles that raise capital through an initial public offering (IPO) and then issue a fixed number of shares, which trade on an exchange. Synonyms for closed-end funds include closed-end investment companies, closed-end investment trusts, and closed-end investment funds. These types of funds differ from open-end mutual funds, which continuously accept new investments and issue new shares to meet demand. Closed-end funds typically trade at a discount or premium to their net asset value (NAV), and investors can buy and sell shares on an exchange like stocks. They often have lower expense ratios and more specialized investment strategies than open-end mutual funds.