Investment trust refers that a trust management company invests the pooled funds of investors in securities appropriate for its investment objectives and distributes the earnings to the investors according to the proportion of the beneficial interest holdings. Beneficiary certificate is a kind of stocks that certifies a unit beneficial interest of the investment trust (i.e., an equally divided beneficial interest).
There are two types of beneficiary certificates: open-end and closed-end. As the closed-end type does not stand ready to buy and sell its own shares, its cashability is limited. Thus, to ensure its liquidity, all beneficiary certificates are required to be listed on the KRX.
Beneficiary certificate listed in the KRX are traded in a manner similar to the stocks. However, only the placement of limit quotations is permitted. Block and basket trading are not allowed and the after-hours market is not open.