Because listed on the exchange, the transaction price of closed-end funds is not necessarily equal to their net asset value, but is determined by the balance of market buying and selling forces. When the market price of closed-end fund is higher than its net asset value, the market calls it premium phenomenon; Conversely, when the market price of a closed-end fund is lower than its net asset value, the market calls it a discount phenomenon.
When buying and selling closed-end funds, the calculated income is calculated at the market price, and the unit net value is for reference only. Closed-end funds have closing price, price fluctuation, discount rate and net value. Because closed-end funds are similar to stocks and can be listed and traded, there is a market price. The closing price of the day you see in the market is the market price of the day. The fluctuation indicates the fluctuation range of the market price on that day. Its unit net value is announced every Friday.
There are many factors that determine the price of closed-end funds, so I won't introduce them here. Welcome to pay attention to this website for more investment knowledge.
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