Open-End Management Company


DEFINITION of 'Open-End Management Company'

A company that distributes and redeems securities it issues. The most common open-end management companies are mutual fund companies which sell and redeem shares at the net asset value per share.

BREAKING DOWN 'Open-End Management Company'

This is just a fancy legal name for a mutual fund. An investor in an open-end fund essentially pools his/her money with other investors in order to attain economies of scale, professional management, etc.

This differs from a closed-end fund which has a limited number of shares available. Unlike with open-end funds, an investor in a closed-end fund typically sells his/her shares on the open market to another investor instead of back to the fund company.

  1. Outstanding Shares

    A company's stock currently held by all its shareholders, including ...
  2. Economies Of Scale

    Economies of scale is the cost advantage that arises with increased ...
  3. Net Asset Value - NAV

    A mutual fund's price per share or exchange-traded fund's (ETF) ...
  4. Open-End Fund

    A type of mutual fund that does not have restrictions on the ...
  5. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  6. Closed-End Fund

    A closed-end fund is a publicly traded investment company that ...
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