Course Outline Investment Companies
Terms
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- Types of investment companies
- Face Amount Certificate Company
- The investment company with a fixed portfolio with no management fees,redeemable.
- Unit Investment Trust
- Two types of Managment Companies.
-
Open-end
Closed-end -
The type of management company that:
- Continously offer shares
- Pricing based on NAV
- May only issue common stock
- Prospectus always required
- Sold only OTC
- Purchase for cash only
- Must redeem at NAV - Open-end (Mutual Funds)
-
Management Company
- One time offering
- Pricing based upon supply and demand.
- May issue common, preferred and bonds.
- Prospectus only on primary offering.
-May be listed on an exchange
-May be on margin
-Do not rede - Closed-end
- NAV is short for?
- Net Asset Value
- The ask price is made up by the ________ plus the ______ ________ or (_______).
-
NAV
Sales Charge or (Load) -
A _____________ investment company must distribute at least ____% of net investment income (Div&Int)
nad ______% of capital gains. Any remaining is taxable to company. -
Regulated
90%
90% - A ________ _______ company must invest _____% a certain way.Remaining ____% may be invested in any mannor.
-
Diversified Management Company
75%
25% -
A Contractual Plan that:
- sales charges of 50% of first year's payments.
- 9% of total payments
(there after life) - Front-end load plan
- The _________ _______ plan sales charges are ____% of each individual payment, ___% of first 48 payments then ___% of total payments (life)
-
Spread load plan
20%
16%
9%