Because the total share of closed-end funds is fixed, investors can only buy other people's shares if they want to buy funds, which is the form of stock secondary market trading. Buying open-end funds allows fund companies to distribute new shares to investors without the need for matchmaking between investors. There are three kinds of funds traded on the floor: closed-end funds, LOF and ETF.

According to whether fund units can be increased or redeemed, they can be divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (as the case may be), but are purchased and redeemed by banks, brokers and fund companies, and the fund scale is not fixed; Closed-end funds have a fixed duration and are generally listed and traded on the stock exchange. Investors buy and sell fund shares through the secondary market.