Pre Exam Polishing

Question 1

What is an investment fund and unit trust?

Answer 1

Investment fund is pooled/ collective money from investors where managers try make return for investors usually in form of dividends.

Unit trust is of the same idea HOWEVER they issue units instead of shares.

Question 2

investment trust and unit trust, what’s the different?

Answer 2

Investment funds are publicly traded on stock market and have fixed shares.

Units trusts/ OEIC, sell units which are not at a fixed so they can grow and decrease.

Question 4

Unit trust, investment trust, investment fund follow who in law?

Answer 4

FCA

Question 5

What is an employee incentive scheme?

Answer 5

In simple a way employers reward employees in form of shares or bonuses.

Question 6

Investment Fund, investment trust, OEICS and unit trusts. What’s what here?

Answer 6

Investment fund is the category where they fall under.