Understanding Closed-End Funds and Activism

This chapter explores the structural differences between closed-end and open-end funds, highlighting their trading mechanics and market behavior. It discusses the role of activist investors and their strategies to influence fund governance, as well as the challenges they face in rallying retail investors. Legal complexities surrounding the Investment Company Act and the implications of recent high-profile cases are also examined, shedding light on the evolving landscape of fund management and investor rights.