This study develops and tests two volatility-related explanations of the discount using daily data.  Results show significant support for the ideas that both long- and short-term volatility are positively associated with discounts on closed-end domestic equity funds.  Long-term volatility in closed-end funds may reflect variations in long-term trading in the funds’ shares as well as variation in economic uncertainties and fluctuations in investors’ perceptions of these uncertainties.  Short-term volatility, on the other hand, may be the result of short-term trading and speculation as well as the activities of market timers and late traders.