Chapter 9: Investment Companies

Chapter summary

Chapter 9 covers investment companies: open-end mutual funds (priced at NAV, redeemed by the fund), closed-end funds (traded on an exchange, price differs from NAV), UITs (fixed portfolios), and ETFs (exchange-traded, priced intraday). Know NAV calculation, the three mutual fund share classes (A, B, C), breakpoints, the 12b-1 fee, and the letter of intent. ETFs trade intraday; mutual funds price once daily.

Key concepts

• Types of Investment Companies
• Types of Mutual Funds
• Buying and Selling Mutual Fund Shares
• Other Types of Investment Companies
• Types of Investment Companies
• Types of Mutual Funds
• Buying and Selling Mutual Fund Shares
• Other Types of Investment Companies
• Identify the three types of investment companies: open-end (mutual fu...
• Distinguish between management companies (actively managed) and unit...
• State where each type trades: open-end funds transact directly with t...
• Open-End Management Companies (Mutual Funds)

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