Open-End Mutual Fund: Most mutual funds are open-end funds. This means they issue and redeem shares on a continuous basis, and grow or shrink in response to investor demand for their shares. Open-end mutual funds trade at their net asset value (NAV), and if the fund has a front-end sales charge, that sales charge is added to the NAV to determine the selling price. NAV is the value of the fund’s investments, plus money awaiting investment, minus operating expenses, divided by the number of outstanding shares. An open-end fund is the opposite of a closed-end fund, which issues shares only once. After selling its initial shares, a closed-end fund is listed on a securities market and trades like stock. 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 fund management, usually because the fund has grown very large.

 

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Open-End Mutual Fund: Most mutual funds are open-end funds. This means they issue and redeem shares on a continuous basis, and grow or shrink in response to investor demand for their shares. Open-end mutual funds . . . View Full Definition

Exchange-Traded Fund (ETF): Exchange-traded funds (ETFs) are listed on a stock exchange and trade like stock. You can use traditional stock trading techniques, such as stop orders, limit orders, margin purchases, and s . . . View Full Definition

Pension Fund: A fund set up to pay the pension benefits of a company's workers after retirement.

Overfunded Pension Plan: A pension plan that has a positive surplus (i.e., assets exceed liabilities).