What is Closed-End Management Company?
An investment-management company that sells a limited number of shares to investors on an exchange by way of an initial public offering. For investors to sell the shares they purchased from the closed-end management company, there must be buyers willing to buy the shares at a price determined by the market. The most common type of closed-end management company is a closed-end mutual fund. Read more for examples and further explanation including related video clips and also comments
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Tag: funds
Surrender Fee definition explanation
What is Surrender Fee?
A charge levied against an investor for the early withdrawal of funds from an insurance or annuity contract, or for the cancellation of the agreement. Surrender fees act as an economic incentive for investors to maintain their contract, and they allow the insurance company to have reasonable expectations for the frequency of early withdrawals.
Also referred to as a “”surrender charge””. Read more for examples and further explanation including related video clips and also comments
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Sophisticated Investor definition explanation
What is Sophisticated Investor?
A type of investor who is deemed to have sufficient investing experience and knowledge to weigh the risks and merits of an investment opportunity.
For certain purposes, net worth and income restrictions must be met before a person can be classified a sophisticated investor. The distinction makes an investor eligible to buy into certain investment opportunities, such as pre-IPO securities, that are considered “”non-disclosure”” or “”non-prospectus”” issues. Typically, a sophisticated investor must have either a net worth of $2.5 million or have earned more than $250,000 in the past two years to qualify. Read more for examples and further explanation including related video clips and also comments
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Withdrawal Plan definition explanation
What is Withdrawal Plan?
1) A payment structure arranged with a mutual fund in which the investor receives a set amount of funds from the fund on a periodic basis. This is also called a “”systematic withdrawal plan””.
2) Any strategy in which an investor liquidates a portion of their portfolio and extracts cash periodically, such as an investor selling equity shares every year to help supplement their retirement. Read more for examples and further explanation including related video clips and also comments
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Short-Term Investment Fund – STIF definition explanation
What is Short-Term Investment Fund – STIF?
A type of fund that invests in short-term investments of high quality and low risk. The goal of this type of fund is to protect capital with low-risk investments while achieving a return that beats a relevant benchmark such as a Treasury bill index. Read more for examples and further explanation including related video clips and also comments
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Portfolio Management definition explanation
What is Portfolio Management?
The art and science of making decisions about investment mix and policy, matching investments to objectives, asset allocation for individuals and institutions, and balancing risk against. performance.
Portfolio management is all about strengths, weaknesses, opportunities and threats in the choice of debt vs. equity, domestic vs. international, growth vs. safety, and many other tradeoffs encountered in the attempt to maximize return at a given appetite for risk. Read more for examples and further explanation including related video clips and also comments
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Nasdaq 100 Index definition explanation
What is Nasdaq 100 Index?
An index composed of the 100 largest, most actively traded U.S companies listed on the Nasdaq stock exchange. This index includes companies from a broad range of industries with the exception of those that operate in the financial industry, such as banks and investment companies. Read more for examples and further explanation including related video clips and also comments
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