Overview Flashcards Preview

Investment Companies > Overview > Flashcards

Flashcards in Overview Deck (7)
Loading flashcards...
1
Q

Face-amount certificate company

A

Almost obsolete, used to be used to buy homes. Customer pays a fixed amount, gets a large payout at fixed date

2
Q

Management company

A

investment company organized as a corporation that issues “shares” of stock

3
Q

Open-end mutual fund

A

shares cannot be traded, are redeemable with the fund

4
Q

Close-end fund

A

one-time issuance of stock which then trades. shares are not redeemable

5
Q

Fixed Unit Investment Trust

A

trust selects a fixed portfolio of securities which it then sells units of to investors. investors receive interest payments and principal payments. once all securities have matured, trust self-liquidates

6
Q

Participating UIT

A

Trust invests in shares of a mutual fund

7
Q

Variable annuity

A

customer purchases units until retirement age then can cash out or receive payments