1. Closed-end funds belong to trust funds, which refer to investment funds whose fund scale has been determined before issuance, fixed within a specified period after issuance and traded in the securities market.
2. Because closed-end funds are traded by bidding in securities trading, the transaction price is affected by the relationship between market supply and demand, which does not necessarily reflect the fund's net asset value, that is, the transaction price of closed-end funds has a premium and a discount relative to its net asset value. The practice of foreign closed-end funds shows that the transaction price often has the price fluctuation law of first premium and then discount.