FS Credit Opportunities Corp. v. Saba Capital Master Fund, Ltd. · ¶10

The Investment Company Act (ICA) comprehensively regulates investment companies. Petitioners, whom we will call the “Funds,” are investment companies that manage closed-end mutual funds. These funds are called “closed” because they contain a fixed number of shares issued at one time. After shares are issued, capital does not regularly flow into the funds when investors buy shares, nor does it flow out when they sell. Instead, shares trade on the open market, which determines their price. Even though the net-asset value of the holdings may be lower due to market fluctuations, long-term investors (like individuals saving for retirement) often favor closed-end funds.

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