corp or trust of pooled funds to invest in large diversified portfolios correct answers investment company
professional management
diversification
lower transaction cost correct answers benefit of investment company
raise capital by selling share to public
registration and prospectus requi...
Series 65 Chapter 2 || Already Graded A+.
corp or trust of pooled funds to invest in large diversified portfolios correct answers investment
company
professional management
diversification
lower transaction cost correct answers benefit of investment company
raise capital by selling share to public
registration and prospectus requirement correct answers Securities ACT of 1933
SEC regulation of investment companies
how shares sold to public correct answers Investment Company Act of 1940
investment company correct answers Pooled investment vehicle
FAC Face Amount Certificate
UIT Unit Investment Trust
Management investment companies correct answers 3 classes of investment companies (ICA
1940)
issuer guarantees fixed sum to investor with set date
investors pays either periodic or lump sum
not traded in the secondary market
redeemed by issuer
classified as investment company correct answers FAC
certificate paid in lump sum correct answers Fully paid FAC
unmanaged investment company
trust indenture organization
no board of directors
no investment advisor
no active portfolio management or trading correct answers Unit Investment Trust (UIT): fixed or
non-fixed
Investment Company Act of 1940
, buy other non fixed UIT, stocks or bonds (fixed UIT)
must hold secondary markets in units
allows holders ability to redeem units correct answers UIT Trustees
proceeds distributed when securities are liquidated correct answers Redeemable shares of
beneficial interest or units
bond portfolio purchased
equity portfolio: set liquidation date in offering
mutual fund purchase correct answers Fixed UIT
Non-fixed UIT
many organized as UITs, trade on exchanges or Nasdaq correct answers ETFs
most familiar type
active management
securities portfolio for state objective correct answers Management Investment Company
common stock offering
fixed number of shares with SEC initially
may issue bonds, preferred stock
after stock distribution, buy or sell on secondary market
exchange or OTC: TRADES IN SECONDARY MARKET
NAV calculated weekly correct answers closed-end: publicly traded funds
determined by market, sell correct answers bid price closed-end fund
supply and demand, buy correct answers ask price
NONE correct answers Relationship to the net asset value NAV of shares
shares domiciled in foreign countries, e.g. Korea Fund
often difficult to liquidate, therefore not open end correct answers Country Funds
dividends when declared, voting, preemptive correct answers Shareholder rights of CEF
no specific number of shares
registers with SEC
raise unlimited capital
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