Mutual fund

A professionally managed pool of money invested in stocks, bonds, money market instruments, or other securities, which is divided into shares and sold to investors. An "open-end" mutual fund keeps issuing shares as investors send more money and must stand ready to buy back shares at any time. A "closed-end" fund issues a specific number of shares, which are then traded on one of the stock markets. Shares can be sold only if a buyer agrees to take them. The selling price of a closed-end fund may be higher than the offering price (selling at a "premium"), or it might be lower (selling at a "discount").