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mutual fund |
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mutual fundA company that invests its clients' funds in other companies, equities, or securities. The owner of stock in the investment company holds a proportional interest in the investment company based on the number of shares in the portfolio holdings of the company. In this way a small investor may benefit from professional judgment and a much broader range of investments than might be possible individually. Mutual funds are generally of two types: open-end investment, meaning companies that issue new stock whenever they sell shares to purchasers, and closed-end investment, companies that issue a fixed number of shares that must be purchased through a stock broker. In open-end funds, the investor is not generally committed to hold the stock for a specified period. Closed-end funds are sometimes sold on a contractual basis requiring a minimum investment and holdings kept for a minimum period. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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