RCSC 150B2 Chapter 12: Mutual Funds
6 Dec 2017
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Mutual funds are investment instruments in which individuals pool their "unds "or inves(cid:2210)ng in stocks, bonds, money market instruments, and other assets. Managed by pro"essional money manager known as fund manager. (cid:336)(cid:400)(cid:337) diversi"y investment risk by buying many di erent types o" investments. (cid:336)(cid:401)(cid:337) are managed by pro"essional "und managers. (cid:336)(cid:402)(cid:337) allow people to invest with small amounts. Stock market took o on a long bull run. Period during which stock prices in general are consistently rising. Stock market: public market "or trading ownership shares (cid:336)stocks(cid:337) o" a company among investors. Open-end mutual fund allows con(cid:2210)nued investment into the "und and issue shares based on the value o" the "und. Buys back shares when investors want to sell. With the securi(cid:2210)es acts o" (cid:400)9(cid:401)(cid:401) and the securi(cid:2210)es exchange act o" (cid:400)9(cid:402)(cid:403), congress enacted regula(cid:2210)ons that require mutual "unds to register with the securities and. Promotes "ull disclosure and protects investors against "raudulent/manipula(cid:2210)ve prac(cid:2210)ces in securi(cid:2210)es markets.
