What is the meaning of Exchange-traded fund?

Exchange-traded or closed-end funds behave like mutual funds in some ways and like stocks in others. Like other mutual funds,' Exchange-traded fund's buy and sell individual investments in keeping with their investment objectives. But the funds resemble stocks in the way they are traded, since they raise money by selling a fixed number of shares when the fund is first issued. Then the shares trade in the secondary market, either on a stock exchange or in an electronic market. The market price of shares of a closed-end fund fluctuates not only according to the value of its underlying investments but also in response to investor demand.