Can closed-end funds issue other types of securities besides common stock?

Closed-end funds have the ability to issue various types of securities beyond just common stock. This flexibility allows them to raise capital through various financial instruments, which can include preferred stock and bonds, depending on the specific structure and investment strategy of the fund.

The issuance of different security types provides closed-end funds with diverse ways to attract investors and manage their portfolios, which can enhance liquidity and financial stability. This is a significant characteristic that differentiates closed-end funds from other types of investment vehicles that may have more limited issuance capabilities. The capacity to issue different classes of securities can also reflect on the fund's goals and market conditions, allowing for strategic financial maneuvers to optimize performance.