The Open-End Fund
A mutual fund as you can see in the previous post is a good way for people starting to invest. Another term that you should get to know is open-end fund which is generally like a mutual fund. The difference between the two is that in an open-end fund, there is no limit to the number of shares that the fund will issue. This means that you can buy and buy and buy without worrying that you have reached the maximum amount of shares.
But this feature is not bulletproof. When managers of the fund determine that the assets of the cumulative fund are way too much, they would call a halt to issuance of shares.
