chapter 4 Flashcards
Management investment company
An investment company, such as a mutual fund or closed-end fund, that hires an investment advisor to actively select and manage a securities portfolio to achieve a stated investment goal
Mutual fund
A type of management investment company that makes a continuous offering a brand new, redeemable shares to investors, also referred to as an OPEN-END FUND
Redeemable
a type of investment company security, such as a mutual fund and a unit investment trust, for which there is no secondary market or investors-to-investors trading: instead the security is directly bought from and sold back to the issuer
Net asset value (NAV)
the value of a mutual fund and the basis of what investors pay, calculated as the total assets of the fund minus its total liabilities
Forward Pricing
the method by which mutual funds calculate the purchase and redemption prices, which are based on the next NAV calculation after the order is received
Breakpoints
Offer Mutual fund investors discounts off the sales charge based on the dollar amount invested
Closed-end fund
a type of investment company that issues exchange-traded shares that reflect actively managed portfolios
Unit investment trust (UIT)
A type of investment company that issues redeemable securities representing an undivided interest in a fixed trust, in which there is no active management of the portfolio
Exchanged- traded fund (ETF)
an exchange- traded investment company that is designed to closely track the performance of a specific benchmark, sector, or index
