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Closed-end funds do certainly own a very unique characteristic in the world of finance. They are always negotiate in a different price than their net asset value. Most of the times in a discount. this study is making an attempt to illustrate and finally explain this characteristic. for this purpose we incorporate both the existing literature and an empirical research. most of the evidence points toward to the investors´ sentiment as a cause of the discount while from the empirical research we conclude that market price and net asset value of a fund do not share a long run equilibrium relationship. Moreover we incorporate the very promising method of cointegration for the empirical research. This strange fact has indeed much interest and seems to appeal a lot at the academic world.

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Konstantinos Sfakianakis owns a degree in finance and insurance as well as a master´s degree in business economics, finance and banking. He worked for two of the largest financial institutions of Greece and for the time being he is working on empirical researches related to finance and banking.

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