An investment company can be divided into three main types: mutual funds, closed-end funds, and unit investment trusts and each one has unique features. Mutual funds, otherwise referred to as “open-end” investment companies, are available in the form of bond funds, stock funds, and money market funds. Closed-end funds offer investors a fixed number of shares at a time, which trade on a stock exchange, while unit investment trusts are investment companies that buy and usually hold a fixed portfolio of bonds, stocks, or other securities. Mutual funds and UIT allow investors to redeem their shares, however closed-end fund does not provide this option. As such, closed-end fund requires investors to sell their shares to other investors on the secondary market at prevailing market price.