Which of the following is NOT a characteristic of a closed-end fund?

Closed-end funds are a type of investment vehicle that has distinct characteristics differentiating them from other fund types, particularly open-end funds. One key feature of closed-end funds is that they have a fixed number of shares issued at the time of the fund's initial public offering (IPO). Once these shares are sold, they are typically not available for continuous offerings. This means that once the fund is established and shares are issued, additional shares are not created to meet buyer demand; instead, shares trade on the secondary market.

Given that closed-end funds do not continuously offer new shares, the correct answer highlights this characteristic. In contrast, the other options are true about closed-end funds: shares are indeed traded on exchanges (which relates to the liquidity and availability for investors), and their market price is determined by supply and demand, which may differ from the net asset value (NAV) of the fund's holdings.