Corporate fund means that the fund itself is a joint stock limited company, and the company raises funds by issuing stocks or beneficiary certificates. When an investor buys a company's stock, he becomes a shareholder of the company, receives dividends or bonuses with the stock, and shares the income from the investment.

Enterprise funds can be divided into the following two categories:

1, closed

Closed-end fund is a joint-stock company formed by investors buying shares of the company. The shares issued by the company can be listed and traded on the stock exchange, and their prices are determined by the relationship between market supply and demand. The number of shares issued by the company is fixed. After the expiration of the issuance period, the fund will be closed and no more shares will be added. Investors are not allowed to withdraw their shares after buying, that is, they are not allowed to ask the fund company to buy back shares or increase new investments. If investors want to realize their shares, they must take them to the stock exchange for transfer.

Step 2 make it public

Obviously different from closed-end funds, investment companies of open-end funds only issue one kind of stock (common stock) in principle, and shareholders can decide to withdraw shares (that is, ask the company to return shares) or expand the proportion of shares held by the company according to market conditions and their own investment decisions. In other words, the company's total fund is not closed, but can be added. Some people call it "additional investment fund"