Title | Chapter 14 Vocabulary |
---|---|
Author | Marie Cochran |
Course | Personal Finance |
Institution | St. Johns River State College |
Pages | 1 |
File Size | 43.5 KB |
File Type | |
Total Downloads | 53 |
Total Views | 162 |
The vocabulary words they are important to help with the homework and studying....
Week Thirteen: Chapter 14 Vocabulary
FIN 1100 04/05/19
Mutual Fund: An investment fund that raises funds from investors, pools the money, and invests it in stocks, bonds, and other investments. Each investor owns a share of the fund proportionate to the amount of his or her investment.
Investment Company: A firm that invests the pooled money of a number of investors in return for a fee.
Open-End Mutual Fund: A mutual fund that has the ability to issue as many shares as investors want. The value of all the investments that the fund holds determines how much each share in the mutual fund is worth.
Net Asset Value (NAV): The dollar value of a share in a mutual fund. It’s the value of the fund’s holdings (minus any debt) divided by the number of shares outstanding.
Closed-End Mutual Fund: A mutual fund that can’t issue new shares. These funds raise money only once by issuing a fixed number of shares, and after that, the shares can be traded between investors. The value of each share is determined both by the value of the investments the fund holds and by investor demand for shares in the fund.
Exchange Traded Fund (ETF): A hybrid of a mutual fund and an individually traded stock or bond that trades on an exchange just as individual securities do and that can be bought and sold throughout the trading day.
Unit Investment Trust: A fixed pool of securities, generally municipal bonds, in which each share represents a proportionate ownership interest in that pool. The bonds are purchased and then held until maturity, at which time the trust is dissolved.
Unit Investment Trust: A fixed pool of securities, generally municipal bonds, in which each share represents a proportionate ownership interest in that pool. The bonds are purchased and then held until maturity, at which time the trust is dissolved.
Hedge Fund: An investment fund that is private, largely unregulated, and very risky and that charges very high fees and allows only wealthy investors to invest....