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Unit 7 - Investment Companies - 10 Qs - Coggle Diagram
Unit 7 - Investment Companies - 10 Qs
Type of IC
Face amount cert :check:
Redeemable
invest in debt like certificate
UIT :check:
Redeemable
Trust dissolves when securities mature
fixed portfolio trust
Managment companies
Close end
Business Development Company BDC :check:
Close end: can issue preferred and debt securities :check:
NOT Redeemable
Pricing Open vs closed end
Open end
Forward :check:
Redeemable
Mutual fund class shares
Class A shares
: computing Sales charge percentage :check:
Letter of Intent: immediate right to breakpoints :check:
Breakpoint :check:
Class C shares
12b-1 fee :check:
Mutual fund features
Cost of entry (Class a, b,c)
Dollar cost averaging :check:
Withdrawal plans :check:
Mutual fund tax treatment
Dividend distr
NII (Net Investment Income)
Net Investment Income=Gross Investment Income−Investment Expenses
Conduit Theory
Capital Gain Disrtritbution
investor when exercising conversion priviledges :check:
Mutual Fund suitability
Stock fund, Growth value funds, agressive gorwth funds, value funds, equity income funds , option income funds, specialized (sector) funds, SPecial Situation funds, Blend core funds, index funds, foreign stock funds
Bond funds
US government funds
Principal-Protected Fund :check:
ETFs
Standard, Leveraged, Inverse :check:
For leveraged ETFs, apply each day’s leveraged % change to the new value — every day starts fresh.
Main difference with a mutual fund :check:
IC benefits and risks
UIT, CEF, ETF
Rules and regulations IC act 1940
Selling dividends :check:
Sales agreement Anti reciprocal rule, Noncash compensation, gift rule
Mutual fund documentation
Prospectus of management company
Include: summary section :check:
statement of additional information (SAI) :check: