DANCEST 805 Lecture Notes - Lecture 7: W. M. Keck Observatory, Target Date Fund, Investment Company
Document Summary
Iapm s6: chapter 4 mutual funds&other investment companies. Load: sales commission charged on a mutual fund; causes open-end fun prices to be higher than nav (as shares are always sold at nav) Open-end fund: also called mutual fund; fund that issues or redeems shares at net asset value. Closed-end fund: fund in which shares may not be redeemed but instead traded at prices that can differ from net asset value; shares are sold from investor to other investor. 2. 3 other investment organisations: intermediaries that are not formally organised or regulated but perform similar functions as investment companies. Money market funds: funds investing in money market securities (commercial paper, repurchase agreements etc, average maturity: bit more than one month, fixed nav at per share + no tac implications with redemption of shares. Specialised sector funds: equity funds concentrating on particular industry or country.
