Term
| Established as a trust Operates as holding co Supervised not managed Lower fees than mutual fund Fixed portfolio held for life of trust No substitutions made without written notice to SEC All unitholders must be notified of substation w/in 5 days. SEC can request liquidation.At maturity proceeds distributed to investors on a per unit basis |
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Definition
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Term
| Issue debt certificates that offer predetermined interest rates. |
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Definition
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Term
| Operate as a holding company for the portfolio |
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Definition
| Each fund has its own inUnit investment trust |
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Term
| Can be purchased with either periodic installments or lump sum payments. |
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Definition
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Term
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Definition
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| Lower fees than mutual fund |
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Definition
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| Fixed portfolio held for life of trust |
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Definition
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| No substitutions made without written notice to The SEC. |
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Definition
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Term
| All unitholders must be notified of a substitution w/in 5 days. |
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Definition
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Term
| SEC can request liquidation if it deems it is ineffective |
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Definition
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Term
| Ag maturity the proceeds are distributed to investors on a per unit basis |
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Definition
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Term
| Have a maturity of at least 24 months |
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Definition
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Term
| Can be redeemed for a fixed amount on a specific date. |
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Definition
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Term
| Can be redeemed prior to maturity for their stated surrender value. |
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Definition
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Term
| Can be redeemed prior to maturity for their stated surrender value. |
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Definition
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Term
| Each fund has its own specific investment policies |
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Definition
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Term
| Generally accepted definition of a mutual fund |
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Definition
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Term
| Main difference between an open and closed mutual fund |
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Definition
| How the shares are purchased and sold |
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Term
| Do closed end or open end funds behave like shares of common stock |
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Definition
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Term
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Definition
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Term
| Sell fractional or full shares |
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Definition
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Term
| No secondary market, redeemed by the fund |
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Definition
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Term
| Common shared securities only |
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Definition
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Term
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Definition
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Term
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Definition
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Term
| Priced according to supply and demand |
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Definition
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Term
Shareholder rights:
Both open/closed end funds have voting and dividend rights, but only who has preemptive rights |
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Definition
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Term
| Can either open or closed end funds be diversified or non-diversified? |
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Definition
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Term
| Investment co act of 1940 defines diversified as 75-5-10 rule |
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Definition
| For 75% of assets, no more than 5%can be invested in any one company. And with this portion, the investment company can't own more than 10% of the voting stock of any target company. There are no restrictions on the other 25% of the assets of the management company. |
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Term
| Non-diversified companies do not have to follow the 75-5-10 rule |
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Definition
| Find it more expedient to pursue their stated goals |
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Term
| Fundamental to long term investing is |
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Definition
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Term
| Effect of funds diversified in industries |
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Definition
| Industries: funds with holdings in wide range of industries tend to reduce the effect of periodic downturns in a particular area of industry |
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Term
| Effect of funds diversified in different types of investments |
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Definition
| Can offer stability in volatile markets |
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Term
| What fund might provide stability in a volatile market |
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Definition
A portfolio containing different types of securities like:
A well diversified income-oriented fund might hold common stocks with a history of high dividends as well as preferred stock, corporate and treasury bonds and money market instruments |
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Term
| What fund would contain a large number of companies including large and small cap users for a long term strategy |
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Definition
| Growth orientated equity fund |
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Term
| Usually capitalized through a one-time offering of shares. |
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Definition
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Term
| After initial offering, values fluctuates with the market |
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Definition
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Term
| Trading may take place on exchange or in the OTC market |
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Definition
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Term
| The investment company does not continuously redeem shares held by investors |
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Definition
| Closed investment company |
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Term
| What,ind of investment company may trade at a premium above or below their NAV |
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Definition
| Closed-ended investment companies |
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Term
| When investors want to liquidate their shares, they must liquidate them at the then-current market value |
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Definition
| Closed end investment companies |
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