ch4_outline - Investment Analysis Chapter 4 I. Investment...

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Investment Analysis Chapter 4 I. Investment Companies a. Financial intermediaries that collect funds from individual investors and invest those funds in a potentially wide range of securities or other assets b. NAV= market value of assets minus liabilities/shares outstanding II. Types of Investment Companies a. Unit Investment Trusts i. Passive management ii. Pools of money invested in a portfolio that is fixed for the life of the fund iii. Shares sold back to trustees at NAV b. Managed Investment Companies i. Open-ended funds: redeems shares at NAV ii. Closed-ended funds: shares may not be redeemed, but instead are traded at prices that can differ from NAV c. Other investment organization i. Commingled funds 1. Partnerships of investors that pool their funds 2. Similar in form to open-ended funds 3. Units bought and sold at NAV ii. Real Estate Investment Trusts (REITs) 1. Similar to closed-ended fund 2. Raise capital by borrowing from banks and issuing bonds or mortgages 3. Highly leveraged
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ch4_outline - Investment Analysis Chapter 4 I. Investment...

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