Open End Investment Companies
Closed End Investment Companies
Indirect Investing
Stocks, Bonds, and Income Funds
Definitions
100
In this type of investment company capitalization changes as new shares are sold and outstanding shares are redeemed.
What is Open End Investment Company?
100
These have fixed capitalization and shares that trade on exchange markets.
What are Closed End investment companies?
100
This involves the purchase of shares of an investment company or an ETF.
What is indirect investing?
100
1996 a Chicago Mutual Fund Research firm decided to use only 9 categories to define these.
What are Stocks, Bonds, and Income Funds?
100
This is the market value of a company based on the price per share of stock multiplied by the # of shares outstanding.
What is capitalization?
200
This is another name for Open End Investment Companies.
What is Mutual Funds?
200
Investors transacting indirectly with closed end investments encounter this and premiums.
What are discounts?
200
These are open or closed end.
What are investment companies?
200
This refers to capitalization or market value of a company calculated as the price of the stock, times the total number of shares outstanding.
What is Cap?
200
You are this type of investor if you think the market may decline.
What is Risk Averse?
300
This is one of the two categories an Open End investment company can be divided into, and this is the one with high short term rates, is insured, attracts large amounts of funds, and was created in 1974.
What are Money Market Funds?
300
Funds that charge investors a sales fee for the costs involved in selling the fund to the investor.
What is Load?
300
These concentrate primarily on international stocks.
What are International Funds?
300
In 1973 Lipper Inc. announced a new system for classifying equity mutual funds with these many classifications.
What is 5?
300
You are this tuype of investor if you are seeking good performance.
What is an aggressive investor?
400
This is the other, of the two categories an Open End investment company can be divided into, and is comprised of multiple major categories of investment objectives, and must specify the objective that the company will use.
What are stocks, bonds, and income funds?
400
All investment companies charge an expense fee to these for running the fund.
Who are shareholders?
400
These are Closed end funds focused on the securities of one country.
What are single country funds?
400
This fund generally seeks to find stocks that are cheap on the basis of standard fundamental analysis yardsticks.
What are value funds?
400
This is the compound average rate of return for a fund for a specified period of time.
What is Average Annual Return?
500
This fund seeks both income and capital appreciation?
What are balanced funds?
500
This measures the actual performance over a stated period of time; such as 3, 5, or 10 years.
What is total return?
500
These tend to keep at least 25% of their assets from the US.
What are Global Funds?
500
This fund seeks to find companies that are expected to show rapid future growth in earnings?
What are growth funds?
500
Investors need to relate the performance of a mutual fund to indexes to judge relative performance with a comparable investment alternatives.
What are Benchmarks?
M
e
n
u