im-04-4e - CHAPTER FOUR MUTUAL FUNDS AND OTHER INVESTMENT...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER FOUR MUTUAL FUNDS AND OTHER INVESTMENT COMPANIES CHAPTER OVERVIEW This chapter describes the various types of investment companies and mutual funds. The chapter discusses services provided by mutual funds and describes expenses and loads associated with investment in investment companies. Investment policies of different funds are described and sources of information on investment companies are identified. LEARNING OBJECTIVES After studying this chapter the students should be able to identify key differences between open-end and closed-end investment companies. Students should be able to describe the expenses associated with investment in mutual funds and identify the major types of investment policies of mutual funds. Students should be able to describe services provided by mutual funds and be able to identify sources of information on investment companies. PRESENTATION OF MATERIAL 1. Investment Companies Key services provided by investment companies are presented in T 4-2. The services include elements of services that are related to scale factors such as reducing transaction costs, diversification and divisibility. Mutual funds can trade securities at lower costs because of the size of the trades and because they are trading larger dollar volumes with brokerage firms. Services related to professional management and administration involve compensation for expertise.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/28/2009 for the course MBA MBA608 taught by Professor Martin during the Spring '09 term at Beirut Arab University.

Page1 / 3

im-04-4e - CHAPTER FOUR MUTUAL FUNDS AND OTHER INVESTMENT...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online