Dow Theory Letter's Glossary


Term: Open-End Fund

Definition:
A fund in where the buyer's purchase money goes directly into the fund. When you decide to sell your shares in the fund, the fund itself redeems the stock, paying you with money from the fund.

An open-end fund is priced on the sum total of the assets divided by the number of shares. These funds may charge a fee for purchase or they may be no-load.