2. For closed-end funds, after the establishment, the fund management company may apply for the listing of its funds on the stock exchange. If approved, investors can buy and sell fund shares in the secondary market just like buying and selling stocks and bonds. Its bidding principle and trading procedure are the same as buying and selling stocks and bonds.
3. Transactional open-end index fund is a special type of open-end fund, which combines the operating characteristics of closed-end fund and open-end fund. Investors can buy or redeem fund shares from fund management companies, and at the same time, they can buy and sell ETF shares in the secondary market at the market price like closed-end funds. However, the purchase and redemption must be replaced by a basket or a basket of fund shares. Because the securities market transaction and the subscription and redemption mechanism exist at the same time, when there is a price difference between the ETF market price and the net value of the fund unit, investors can carry out arbitrage trading. The existence of arbitrage mechanism makes ETF avoid the common discount problem of closed-end funds.
4.[ 1] (listed open-end fund LOF) refers to the open-end securities investment fund listed and traded in this exchange, also known as "listed open-end fund". LOF investors can purchase and redeem funds with the net value of funds through fund managers or their entrusted sales organizations, or they can buy and sell funds through the exchange market at the transaction price set by the trading system.