Investment Companies Study Guide
Chapter 13
Investment Company (会社型投信)
Investment Companies
A corporation or trust in which investors pool their funds and are usually organized as corporations in the same manner as any other business corporation. However, some have been established as trusts and as such are supervised by trustees rather than dir ① Diversification Advantages of Investment ② Professional Management Company ③ Liquidity The basic legistration governing investment company and difines and classifies investment companies into 3 basic types. ① Face Amount Certificate Company The Investment Company Act of ② Unit Investment Trust(UIT) 1940 ③ Management Company The Act requires all investment companies with 100 shareholders or more to register with the SEC. A public offering may not be made by a mutual fund until it has a minimum net worth of $100,000. New shares are registered by the fund periodically, usually Type of Investment Companies Face Amount Certificate Issues debt certificates offering a predetermined rate of interest. Holders are entitled to redeem Company their certificates for a fixed amount on a specified date. Investment companies with no management fee and low sales charges that invest in a fixed Unit Investment portfolio of municipal or corporate bonds are categorized as UIT. The funds are issued in book (UIT / 単位型投資信託) entry form and registered form. Established under an indenture or simil Manage a portfolio of securities in accordance with specified investment objectives. Each day, usually at the end of trading on the NYSE, a management company will determine the value of its Management Company portfolio or the net asset value(NAV) per share. ① Closed-end ⇒ Does not issue redeemable shares ② Open-end ⇒ Issues redeemable shares Usually capitalizes through a 1-time public offering of shares and may issue commom stock, Closed-end Investment preferred stock, or bonds. The company does not continuously issue shares nor will it redeem its Company shares. The market
Investment Company (会社型投信)
Investment Companies
A corporation or trust in which investors pool their funds and are usually organized as corporations in the same manner as any other business corporation. However, some have been established as trusts and as such are supervised by trustees rather than dir ① Diversification Advantages of Investment ② Professional Management Company ③ Liquidity The basic legistration governing investment company and difines and classifies investment companies into 3 basic types. ① Face Amount Certificate Company The Investment Company Act of ② Unit Investment Trust(UIT) 1940 ③ Management Company The Act requires all investment companies with 100 shareholders or more to register with the SEC. A public offering may not be made by a mutual fund until it has a minimum net worth of $100,000. New shares are registered by the fund periodically, usually Type of Investment Companies Face Amount Certificate Issues debt certificates offering a predetermined rate of interest. Holders are entitled to redeem Company their certificates for a fixed amount on a specified date. Investment companies with no management fee and low sales charges that invest in a fixed Unit Investment portfolio of municipal or corporate bonds are categorized as UIT. The funds are issued in book (UIT / 単位型投資信託) entry form and registered form. Established under an indenture or simil Manage a portfolio of securities in accordance with specified investment objectives. Each day, usually at the end of trading on the NYSE, a management company will determine the value of its Management Company portfolio or the net asset value(NAV) per share. ① Closed-end ⇒ Does not issue redeemable shares ② Open-end ⇒ Issues redeemable shares Usually capitalizes through a 1-time public offering of shares and may issue commom stock, Closed-end Investment preferred stock, or bonds. The company does not continuously issue shares nor will it redeem its Company shares. The market