Overview Flashcards
Face-amount certificate company
Almost obsolete, used to be used to buy homes. Customer pays a fixed amount, gets a large payout at fixed date
Management company
investment company organized as a corporation that issues “shares” of stock
Open-end mutual fund
shares cannot be traded, are redeemable with the fund
Close-end fund
one-time issuance of stock which then trades. shares are not redeemable
Fixed Unit Investment Trust
trust selects a fixed portfolio of securities which it then sells units of to investors. investors receive interest payments and principal payments. once all securities have matured, trust self-liquidates
Participating UIT
Trust invests in shares of a mutual fund
Variable annuity
customer purchases units until retirement age then can cash out or receive payments
