A Closed-End Fund is a form of mutual fund that, in order to obtain money for its initial investments, issues a predetermined number of shares through a single initial public offering (IPO). Closed-end funds are not redeemable by the issuer like open-end funds, meaning that an investor cannot sell back their shares to the fund. This limits liquidity and can often lead to higher prices since there is less supply relative to demand.Closed-end funds typically trade on an exchange, where they may be bought and sold just like stocks. They also offer investors the ability to use leverage by borrowing money from their broker in order to buy more shares than they could afford with just cash on hand.While closed-end funds have some unique features, they also come with some risks. For one, because these funds trade on exchanges, their prices can be quite volatile and investors may experience large price swings if sentiment or market conditions change suddenly. Additionally, closed-end funds tend not to have as much diversification as open-ended mutual funds which can increase risk for those who invest in them.