COMMERCE 4FP3 Chapter Notes - Chapter 13: Mutual Fund, Investment Company, Money Market Fund
31 Mar 2019
School
Department
Course
Professor
Document Summary
Why investors purchase mutual funds: an investment chosen by people who pool their money to buy stocks, bonds, and other financial securities selected by professional managers who works for investment companies. Each investor has a right to a proportional share of the assets of the fund and any income it earns: many people choose mutual funds for their retirement account. Investment company: a firm that for a management fee invests the pooled funds of small investors in securities approp to its stated investment objectives. Closed-end fund: a mutual fund whose shares are issued by an investment company only when the fund is originally set up: a fund of finite size. Two types of funds have gained popularity in the marketplace: Trades throughout the day on a stock exchange at changing market prices. Short-sell: practice of selling a borrowed stock in the hope of covering the sale by buying it at a lower price later.
