Closed End Funds

Buying and Selling Closed End Funds

Closed end funds generally do not continuously offer their shares for sale. Rather, they sell a fixed number of shares at one time (in the initial public offering), after which the shares of Closed end funds are listed on securities exchanges and bought and sold in the open market, typically a secondary market, such as the New York Stock Exchange, the American Stock Exchange, or the Nasdaq Stock Market.
The price of closed end fund shares that trade on a secondary market after their initial public offering is determined by the market and may be greater or less than the shares' net asset value (NAV). They typically trade in relation to, but independent of, their underlying net asset values (NAVs). Intra-day trading allows investors to purchase and sell shares of closed end funds just like the shares of other publicly traded securities. In addition, when shares of closed end funds trade at prices below their under-lying NAVs (at a discount), investors have the opportunity to enhance the return on their investment by making bargain purchases.

Midas Mutual Funds Discovering Opportunities. Review our Prospectus. www.MidasFunds.com

Closed end fund shares generally are not redeemable. That is, a closed end fund is not required to buy its shares back from investors upon request. Some closed end funds, commonly referred to as interval funds, offer to repurchase their shares at specified intervals.