Investment Companies Flashcards

1
Q

UIT

A

Fixed portfolio, no mgt fee, supervised, unmanaged, set up for a specific period of time - set termination date, finite number of units, non-traded, redeemed by issuer

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2
Q

Diversified investment company

A

At least 75% of assets raised from investors, spread out the following way:

  • no more than 5% (of the 75) can be invested in one company
  • cannot own more than 10% of the outstanding shares of a company

75 - 5 - 10

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3
Q

Hedge fund

A

Established as a DPP (LP), issued through a private placement, w/o SEC registration, no more than 99 investors, not liquid, non-redeemable, uses leverage

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4
Q

Private equity fund

A

Invests in securities that are not publicly traded, usually LP’s, only available to HNW, set up for specific period, often 10 yrs, typically leads to IPO afterwards

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5
Q

Sales charge

A

POP - NAV/POP

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6
Q

Max sales charge

A

8.5

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7
Q

Investment company structure

A
  • at least 100k sum
  • at least 100 investors
  • board of directors (5 yr term, annual elections, 40% outsiders
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8
Q

REITs

A

At least 75% of gross income must come from real estate related projects, of that 75, 95% must be from RE divs and interest

At least 100 shareholders
5 or fewer individuals may not own more than 50% of the shares
Must distribute 90% of income

Trades on secondary mkt
Not a fund
Not an LP

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9
Q

Type of investment company that distributes at least 90% of its income

A

Regulated

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