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Unformatted text preview: are factored in as well LEVERAGE The book value is the NAV per share the stock will be trading at a premium (market > book) if investors are optimistic about future earnings Book value = par value Additional Paid in capital when price at IPO is greater than par value A mutual fund that recalculates at the end of the day its NVA and lets investors buy or sell shares is called an open ended fund Open ended funds are their own market makers Closed end funds can trade at a discount or premium examples are real estate investment trusts ETF Exchange Traded Funds are the same as open ended funds but they do it on a per-second basis as opposed to the end of the day...
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This note was uploaded on 02/29/2012 for the course BADM 3501 taught by Professor Geurts during the Fall '12 term at GWU.
- Fall '12