A closed-end management company is an investment company that manages closed-end mutual funds and sells a limited number of shares to investors on an exchange by way of an initial public offering. Breaking Down Closed-End Management Company The Investment Company Act of 1940 regulates closed-end managment companies. Closed-end management companies specialize in the management of
What Is a Closed-end Mortgage? A closed-end mortgage (also known as a “closed mortgage”) is a restrictive type of mortgage that cannot be prepaid, renegotiated, or refinanced without paying breakage costs or other penalties to the lender. This type of mortgage makes sense for homebuyers who are not planning to move anytime soon and will accept
What Is a Closed-Market Transaction? A closed-market transaction is an order placed by a company’s insider to buy or sell restricted securities from within the company’s own treasury. Appropriate documentation must be filed before a closed-market transaction order can be placed. Key Takeaways A closed-market transaction is an order placed by a company’s insider to
What Are Closely Held Shares? Closely held shares refers to stocks that are held by a small number of investors in a closely held corporation; a closely held corporation is one where a small number of investors possess most of the corporation’s available shares. These shareholders—also called “majority” or “controlling” stockholders—are either affiliated with the company, its management, or
What Is the Close Period? The close period (or closed period) is the time between the completion of a listed company’s financial results and the announcing of these results to the public. The close period is typically regarded as the one-month period preceding the release of a company’s quarterly results, and the two-month period before
What Is a Close Position? Closing a position refers to executing a security transaction that is the exact opposite of an open position, thereby nullifying it and eliminating the initial exposure. Closing a long position in a security would entail selling it, while closing a short position in a security would involve buying it back.
What Is Closet Indexing? Closet indexing is a strategy used to describe funds that claim to actively purchase investments but wind up with a portfolio not much different from the benchmark. By doing so, portfolio managers achieve returns similar to an underlying benchmark, like the S&P 500, without exactly replicating the index. The motivation for closet indexing
What Is the Closing Bell? The closing bell is a bell that rings to signify the end of a trading session at a stock exchange. The time for trading for higher earnings has passed. Not all exchanges use this traditional system, but the New York Stock Exchange (NYSE) does. The closing bell occurs at 4:00 p.m. EST
What Is a Closing Entry? A closing entry is a journal entry made at the end of accounting periods that involves shifting data from temporary accounts on the income statement to permanent accounts on the balance sheet. Temporary accounts include revenue, expenses, and dividends, and these accounts must be closed at the end of the accounting year.
What Is a Closing Quote? A closing quote is a security’s final regular-hours trading price for the day. Because of globally interconnected markets, extended-hours trading sessions, and the forces of supply and demand, the previous day’s closing quote will not necessarily be the next day’s opening quote. The first trade of the next day occurs
