Closed-End Funds have a fixed number of shares that are traded on a stock exchange throughout the day.
Once the necessary capital is raised, the fund is “closed” to new investors and the shares will now begin trading in the secondary market. Purchase price is determined by SUPPLY and DEMAND, this may be different from the Net Asset Value (NAV) of the fund. If you purchase shares at a price that is lower than NAV, you have bought the shares at a discount. If you purchase shares at a price that is higher than NAV, you paid more then the fund is currently worth – a premium.