Closed-end discount
Market basicsThe gap between the traded price of an instrument whose supply is fixed and the value of what it represents, persisting because no creation-and-redemption mechanism exists to arbitrage it away.
In plain terms
Not the same thing as an exchange-traded fund’s premium, which a participant is paid to remove within hours. With nobody being paid to close it, it can stand for years — and where the instrument redeems on a stated date at a formula value, it ends on that date regardless.