Indirect Investment involves purchasing securities that represent claims on other underlying securities, allowing diversification and savings in transaction costs.
Forward Pricing is a method used by open-end investment companies where the share price is determined by the Net Asset Value (NAV) of outstanding shares. It ensures that all incoming buy and sell orders are based on the next net asset valuation of fund shares.
The Investment Company Act of 1940 is a U.S. legislation that mandates the registration and regulation of investment companies by the Securities and Exchange Commission (SEC). It sets forth the guidelines by which mutual funds and other investment companies operate.
A comprehensive guide to understanding open-end management companies, including their responsibilities, types, frequently asked questions, and more.
