Unit 14 - Pooled Investments Flashcards
Does a closed end funds stock price trade in parallel with its NAV?
No, the stock can trade at a discount or premium to NAV.
Which of the following is not considered an investment company? Face-amount certificate company | Unit Investment Trust | Holding Company
Holding Company
An investment company’s board of directors must not have more than what percentage of the funds owners?
60 Percent
An investment company making a public offering must have a minimum net worth of how much?
$100,000
True or False: An investment company can choose a custodian bank that does not have FDIC converage?
True
When an investor is purchasing newly issued shared of common stock, are they investing in a closed end fund or open end mutual fund?
Open end mutual fund
Hedge funds are generally structured as which entity type? LLC | LLP | C Corp
Limited Partnership
What is a hurdle rate?
This is the minimum return required for hedge funds to be paid an incentive fee?
True or False: A Unit Investment Trust (UIT) is an actively managed portfolio?
False
What percentage of a REITs income must be distributed to shareholders as dividends for it to avoid being taxed as a corporation?
90%
What percentage of a REITs income must be derived from real estate?
75%
