Publicly Traded Fund Law and Legal Definition

Publicly Traded Fund is a fund with a definite number of shares outstanding and never redeems it as mutual funds. Publicly-traded funds perform exactly as stock in the market than open-end funds. However, closed-end funds issued a fixed number of shares to the general public in its primary offering, and it is bought and sold on a stock exchange. There is no obligation to issue new shares or redeem outstanding shares. The cost of a share in a publicly traded fund is calculated on the basis of its market demand and such shares are traded at a discount or at a premium.