CEF
Business & Finance abbreviation · Stock Market & Investing
| Stands for | Closed-end fund |
|---|---|
| Categories | Business & Finance |
CEF stands for Closed-end fund, a stock market & investing abbreviation.
Investment fund that raises a fixed amount of capital through an IPO and then trades on an exchange, with no new shares created or redeemed daily. Because supply is fixed, CEF shares often trade at a discount or premium to the fund's net asset value.
Example: The municipal bond CEF trades at a 9 percent discount to NAV and yields 5.8 percent.
Usage notes
Many CEFs use leverage to boost income, which increases risk. Activist investors sometimes buy deeply discounted CEFs and push for liquidation or conversion to an open-end fund to capture the discount. In the UK, investment trusts are the equivalent structure.
Related abbreviations
More stock market & investing abbreviations
- bps – Basis points
- BSE – BSE Limited (formerly Bombay Stock Exchange)
- BVPS – Book value per share
- CAC 40 – Cotation Assistée en Continu 40 (continuous assisted quotation 40)
- Cboe – Cboe Global Markets (Chicago Board Options Exchange)
- CBOT – Chicago Board of Trade
- CME – Chicago Mercantile Exchange
- CUSIP – Committee on Uniform Securities Identification Procedures
- DAX – Deutscher Aktienindex (German stock index)
- DCA – Dollar-cost averaging
- DEF 14A – Definitive proxy statement (Schedule 14A)
- DJIA – Dow Jones Industrial Average