Business and Personal Finance Dictionary

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• OPEN-END MUTUAL FUND
  
  Most mutual funds are open-end funds, which issue and redeem shares on a continuous basis, and therefore grow in response to investor demand. An open-end fund is the opposite of a closed-end fund, which issues shares only once. After that, shares in the closed-end fund are traded like stock among investors. The sponsor of the fund is not involved in those transactions. However, an open-end fund may be closed to new investors at the discretion of the management, usually because the fund has grown very large. Large funds may have difficulty investing their assets nimbly enough.
  
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