What is an Asset Management Company (AMC)? Flashcards
1
Q
what is an asset management company?
A
an example of an investment bank’s client
an example of an institutional investor
2
Q
what do AMC’s do?
A
they invest pooled funds of clients into various securities
(e.g., stocks, bonds etc)
3
Q
how do AMC’s make money?
A
they take a commission fee for the percentage of the fund that they’re managing
4
Q
portfolio manager?
A
the individual who manages the investments and makes the investment decisions
5
Q
benefit of AMCs?
A
offer more diversification because they have larger pool of resources opposed to an individual investor which mitigates risk
