Open-end vs Closed-end Mutual Funds

This video explains the differences between open-end and closed-end mutual funds. A comprehensive example is provided to illustrate how the purchase of 400 shares in a mutual fund would differ based on whether it was a open-end or closed-end fund.
-
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
-
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
* eepurl.com/dIaa5z
-
SUPPORT EDSPIRA ON PATREON
* / prof_mclaughlin
-
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
* edspira.thinkific.com
-
LISTEN TO THE SCHEME PODCAST
* Apple Podcasts: podcasts.apple.com/us/podcast...
* Spotify: open.spotify.com/show/4WaNTqV...
* Website: www.edspira.com/podcast-2/
-
GET TAX TIPS ON TIKTOK
* / prof_mclaughlin
-
ACCESS INDEX OF VIDEOS
* www.edspira.com/index
-
CONNECT WITH EDSPIRA
* Facebook: / edspira
* Instagram: / edspiradotcom
* LinkedIn: / edspira
-
CONNECT WITH MICHAEL
* Twitter: / prof_mclaughlin
* LinkedIn: / prof-michael-mclaughlin
-
ABOUT EDSPIRA AND ITS CREATOR
* www.edspira.com/about/
* michaelmclaughlin.com

[@cmlon]

Your videos are "selling" at a discount, you are too good, man! thanks so much :-)

[@Chasingbrenden]

I love the t-style breakdown. As a visual learner, it helps me break up the words into little mental pictures to help my memory. Thank you

[@ahmedxh]

Best explanation on the internet! May you please explain DCF valuation method?

[@brandonspiegel2293]

I really appreciate this knowledge!

[@tytyutyututut]

I understand very well, thank you )

[@kwonzxzify]

good explanation.

[@joaocruz1731]

Hi Michael. Could you please direct me to the link where you explain about the discount and why an investor would pay/sell for 135$ instead of the NAV (150$). Thank you

[@Edspira]

I created a video on a bond discount which can be viewed here: www.edspira.com/topic/amortize-bond-discount The same principles discussed in the first 2 minutes would also apply to a discounted mutual fund. An investor could sell their shares in a mutual fund for less if no one is willing to purchase the stock at $150, and they simply want to sell it. For example, maybe the market has changed, or the mutual fund hasn't been performing well. There are many reasons that an investor may want to get rid of the shares, but no one is willing to pay the full $150 of the initial investment so it will sell at a discount.

[@joaocruz1731]

Hi Michael. Many thanks for that. If I can ask you another issue I don't understand please. My book also mentions that one of the explanations can be the fact that in order to arbitrage the discount one must buy back all the shares in the fund from shareholders. The last few shareholders would refuse to sell at market price and ask for the premium. I don't quite understand that. Can I ask you to clarify that for me please? Many thanks in advance.

[@rez7287]

@@joaocruz1731 Whats that book called?

[@pritishparihar6752]

audio too low