Friday, May 2, 2014

investment companies outline

ask price, offer price, public offering price
  • net asset value + sales charges
  • decide at NYSE closing, sold at that price+sales charge if sold
forward pricing
  • investor pays an estimate price
  • unsure of next NAV pricing
where are mutual funds bought/sold
  • not on exchanges
  • buy shares as new issues at p.o.p.
  • new issues sold at specified price
closed end management investment companies
  • managers invest $
  • buy mostly stocks and bonds
  • offer new shares at initial public offering
  • do not redeem shares
  • capitalization stable/closed
  • traded OTC
  • sold at market price
  • NAV calculation-same as mutual fund NAV calculation
Which of the following are not considered to be registered investment companies under the Investment Company Act of 1940?
  • investment clubs and holding companies
  • NOT under SEC
  • NOT under Investment Company Act of 1940
  • mutual fund-not registered investment company
  • open end management investment company, registed investment company
Which of the following are not considered to be management companies under the Investment Company Act of 1940?
  • Unit Investment Trusts and Exchange traded funds
  • UIT and ETF-no active managers
  • open end and closed fund hire investment advisor to manage portolios and rei

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