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Definition Of Open-end Management Company:


A company that distributes andredeems securities it issues.
The most common open-end management companies aremutual fund companies which sell and redeem shares at the netasset value per share.This is just a fancy legal name for a mutual fund. An investor in an open-endfund essentially poolshis/her money with other investors in order to attain economies of scale, professional management, etc. This differs from a closed-end fundwhich has a limited number of shares available. Unlike with open-end funds, an investor in a closed-end fund typically sellshis/her shares on the open market to another investor instead of back to the fund company.

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