Closed-End Fund Discounts and Premiums
Pacific-Basin Capital Markets Research, Vol. 2, 1991
20 Pages Posted: 23 May 2006
This paper reviews and analyzes five areas relating to closed-end funds. (1) Issues relating to the existence of closed-funds and why rational investors subscribe to new issues of them. A detailed set of model assumptions is examined in order to understand the basis for closed-end funds coming into existence. (2) The time-series properties of discounts. (3) The cross-sectional variation in closed-end fund discounts. (4) Issues of weak and semi-strong form efficiency. (5) Issues relating to the open-ending of closed-end funds.
Keywords: closed-end funds, discounts, market efficiency, open-ending
JEL Classification: G10, G12, G14, G23
Suggested Citation: Suggested Citation