文档介绍：Chapter 9 panies
Chapter 9 panies
panies
panies are a type of financial intermediary, they obtain money from investors and use it to purchase financial assets.
In return the investor receive certain rights regarding the financial assets that the pany has invested and any earnings that it may generate.
In the simplest and mon situation, the pany has only one type of investor—stockholders.
Chapter 9 panies
For an individual there are two advantages to investing in pany instead of investing directly in the financial assets that panies own. One is economies of scale(portfolio) and the other is professional management(specialist ).
Net asset value (NAV)
An important concept in understanding how pany operates asset value.
Chapter 9 panies
If an pany’s NAV at the end of day t, it can be determined by the following equation:
Where MAV,LIAB, NSA denote the market value of the pany’s asset, the dollar amount of the pany’s liabilities, and the number of shares the IC has outstanding at the day.
Chapter 9 panies
Major types of panies
Unit investment trust
A unit investment trust is an pany that owns a fixed set of securities for the life of pany, that is the pany rarely alters position of its portfolio over the life of pany.
Formation — to form a UIT, a sponsor( often brokerage firm) purchases a specific set of financial asset and deposits them with a trustee.
Chapter 9 panies
The security public offered from the UIT often called redeemable trust certificated.
panies
pany should have board of directors and portfolio manager, like the other generally corporate.
Investor received return form IC should pay management fees(also called advisory fees).
Closed—end pany
Unlike UIT closed—end panies
Chapter 9 panies
more often called closed—end funds, do not stand ready to purchase their own shares whenever one of their owners decides to sell them. Their shares are traded in anized exchange or OTC.
Most closed—end funds have unlimited lives.
Open—end pany
Invest