FIN 310 Chapter Notes - Chapter 1: Underwriting, Money Market Fund, Mutual Fund
17 Oct 2016
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Investment companies financial intermediaries that invest the funds of individual investors in securities or other assets. Net asset value (nav) the value of each share, assets minus liabilities expressed on a per- share basis: Net assets value(nav) = (market value of assets liabilities)/ shares outstanding. Unit investment trusts money pooled from many investors that is invested in a portfolio fixed for the life of the fund: Ells pu(cid:271)li(cid:272) shares (cid:272)alled (cid:862)u(cid:374)its(cid:863), redeemable trust certificates. Lack of active management of the portfolio implies that management fees can be lower than those or managed funds. Open-end fund a fund that issues or redeems its shares at net asset value. Closed-end fund shares may not be redeemed, but instead are traded at prices that can differ from net asset value. Load a sales commission charged on a mutual fund. Marketed to the public either directly by the fund underwriter or indirectly through brokers acting on behalf of the underwriter.
