The national securities and investment fraud law firm, David A. Weintraub, P.A., continues to investigate claims regarding the recommendation and sale of closed-end funds. Closed-end funds can involve a high degree of risk and may be unsuitable for certain investors.
Investors who have sustained losses related to investment in a closed-end fund are strongly encouraged to contact David A. Weintraub, P.A. for a free consultation. Aggrieved investors can call David A. Weintraub, P.A. directly at (800) 718-1422 or email: [email protected]
What Is a Closed-End Fund?
Closed-End Funds or CEFs are a type of mutual fund that unlike open-end funds only sells a limited number of shares during its initial public offering (IPO). Closed End Funds are also known as closed-end investment companies and differ in several ways from the other type of investment companies. There are many types of closed-end funds, but the most common are municipal bond funds or muni bond funds.
Closed-end funds are complex and subject to price volatility. They are less liquid than open-end funds, which are more common. CEFs may be subject to high fees and expenses. They can also result in significant losses, particularly when they use leverage to borrow money and generate income. It is imperative to have a firm understanding of the potential risks involved with investing in a closed-end fund.
The recent market downturn has cost investors in closed-end funds substantial amounts of money, with some CEFs cutting dividends by over 40%. Rising rates continue to put a stop to the normal payouts, causing retirees, often reliant on this form of investment for income, to suffer.
Contact David A. Weintraub, P.A., for a Free Consultation
If you sustained losses after investing in a closed-end fund, contact David A. Weintraub, P.A., for a free case evaluation. Harmed investors can call (800) 718-1422 or email [email protected] to discuss their legal options. All consultations are free and confidential.
Most cases are handled on a contingency fee basis, meaning that clients are not obligated to pay attorney fees unless money is recovered on their behalf.