On 8/13/2022 10:44 PM, Derek Atkins wrote:
Pretty much the only distinction is the UI labels.
-derek
Sent using my mobile device. Please excuse any typos.
On August 13, 2022 21:53:17 Jim DeLaHunt <list+gnuc...@jdlh.com> wrote:
Yes and no.
There are TWO different kinds of "mutual funds", "open end" funds and
"closed end" funds.
The latter is similar to a stock. Some number of shares are initially
sold raising a fund of capital. This capital is used to purchase
securities, commodity contracts, whatever is the proposed sort of things
this mutual fund has been organized to invest in. The shares of this
mutual fund are themselves bought and sold like stocks. The number of
shares outstanding is constant (unless there is a new stock issue or a
buyback)
The open end funds are quite different. The shares are not traded in the
market but are instead bought from or sold back to the fund. In other
words, the fund itself has a price at which it will sell new funds and a
price at which it will "redeem" shares, in effect cancelling them. If
more investors want in (buy shares) the fund has more money to invest.
If many investors want to take their money back, the fund might have to
sell off some of its holdings to get that money. The number of shares
outstanding is not constant.
This difference might not affect how you are accounting for them under
gnucash except with regard to how you might obtain a current quote of
"share price".
Michael D Novack
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