C individual stocks and bonds no management fee

Info icon This preview shows pages 2–4. Sign up to view the full content.

View Full Document Right Arrow Icon
c. Individual stocks and bonds : No management fee, realization of capital gains or losses can be coordinated with investor’s personal tax situation, portfolio can be designed to investor’s specific risk profile. 10. Open-end funds are obligated to redeem investor's shares at net asset value, and thus must keep cash or cash-equivalent securities on hand in order to meet potential redemptions. Closed-end funds do not need the cash reserves because there are no redemptions for closed-end funds. Investors in closed-end funds sell their shares when they wish to cash out. 4-2
Image of page 2

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

View Full Document Right Arrow Icon