Review6 - MutualFund(OpenEnd ClosedEndMutualFund...

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Flash Cards Indirect Investing Types of Investment Companies 1) Mutual Fund (Open End Fund) 2) Closed End Fund 3) Exchange Traded Fund (ETF) Mutual Fund (Open End) 1) Shares are created or destroyed depending on demand. 2) Investors buy shares or redeem (sell) shares directly from the mutual fund. 3) By far the most common type of investment company. Closed End Mutual Fund 1) Fixed number of shares of each fund. 2) Shares trade on a stock exchange. Investors buy shares from or sell shares to other investors. 3) Relatively uncommon. Exchange Traded Fund 1) Shares are created or destroyed depending on demand. 2) Shares trade on a stock exchange. Investors buy shares from or sell shares to other investors. 3) Have experienced rapid growth recently. Fund Family An investment company offering a number of different mutual funds Money Market Fund 1) Invests in money market securities 2) The value of the shares are generally held constant at $1.00 3) May offer check writing privileges Bond Fund
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Review6 - MutualFund(OpenEnd ClosedEndMutualFund...

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