Closed-End Investment Companies
One of the two types of managed investment companies, the closed-end investment company, usually sells no additional shares of its own stock after the initial public offering. Therefore, their capitalizations are fixed, unless a new public offering is made. The shares of a closed-end fund trade in the secondary markets (e.g., on the-exchanges) xactly like any other stock.
To buy and sell, investors use their brokers, paying (receiving) the current price at which the shares are selling plus (less) broker age commissions.
Open-End Investment Companies (Mutual Funds)
Open-end investment companies, the most familiar type of managed company are popularly referred to as mutual funds and continue to sell shares to investors after the initial sale of shares that starts the fund. The capitalization of an .open-end investment company is continually changing—that is, it is open-ended—as new investors buy additional shares and some existing shareholders cash in .by selling their shares back to the company.
Mutual funds typically are purchased either:
1. Directly from a fund company, using mail or telephone, or at the company's office locations.
2. Indirectly from a sales agent, including securities firms, banks, life insurance companies, and financial planners.
Mutual funds may be affiliated with an underwriter, -which usually has an exclusive right to distribute shares to investors: Most underwriters distribute shares through broker/dealer firms.
One of the two types of managed investment companies, the closed-end investment company, usually sells no additional shares of its own stock after the initial public offering. Therefore, their capitalizations are fixed, unless a new public offering is made. The shares of a closed-end fund trade in the secondary markets (e.g., on the-exchanges) xactly like any other stock.
To buy and sell, investors use their brokers, paying (receiving) the current price at which the shares are selling plus (less) broker age commissions.
Open-End Investment Companies (Mutual Funds)
Open-end investment companies, the most familiar type of managed company are popularly referred to as mutual funds and continue to sell shares to investors after the initial sale of shares that starts the fund. The capitalization of an .open-end investment company is continually changing—that is, it is open-ended—as new investors buy additional shares and some existing shareholders cash in .by selling their shares back to the company.
Mutual funds typically are purchased either:
1. Directly from a fund company, using mail or telephone, or at the company's office locations.
2. Indirectly from a sales agent, including securities firms, banks, life insurance companies, and financial planners.
Mutual funds may be affiliated with an underwriter, -which usually has an exclusive right to distribute shares to investors: Most underwriters distribute shares through broker/dealer firms.
ليست هناك تعليقات:
إرسال تعليق