Mutual Funds Segment of the Investment Market

A mutual fund is a particular type of investment company. Specifically, a mutual fund is an open-end investment company. An open-end investment company is one that does not have a fixed amount of capital stock, and continues to sell additional shares to the public as demand warrants. As an open-end investment company, a mutual fund also repurchases the outstanding shares in the fund when such shares are surrendered by shareholders. The term mutual indicates that the investment company represents a mutual pooling of the investment funds of a large number of people who share in the outcome of the combined investment of those funds. The value of a share in a mutual fund is determined by the market value of the investment holdings of the mutual fund.

A closed-end investment trust is a company that sells a specified number of shares in the company to individual investors. The closed-end investment trust company is not obligated to issue addition

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some degree of competition was created between investment and commercial banks; however,, to a greater extent, the functions of the institutional types remained exclusive. In the early-1990s, commercial banks began to agitate for a relaxation of restrictions to permit the institutions to enter the brokerage business.22 Commercial banks got their wish, and some analysts now contend that a continued brokerage business is a key to the survival of commercial banking institutions.23 The marketing practices of commercial banks in the brokerage of mutual funds shares has been criticized by almost all agencies of government and by consumer groups.24 Greater regulatory scrutiny of the marketing of mutual funds by commercial banks is a certainty, and more restrictive laws are highly probable.25 The entry of commercial banks into the mutual funds markets augers a further increase in the costs associated with mutual fund investment for two reasons.26 First, banks view mutual funds as a new profit center. In some instances, commercial banks are become mutual fund managers, and in such capacity may be expected to extract the maximum possible management fee. In other instances, commercial banks act as paid marketing agents for existing m
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Some common words found in the essay are:
Purpose Types, Stock Exchange, Europe United, Fund Market, Institutions Act, Exchange Commission, Company Act, Market Competition, SRI SRI, Insurance Corporation, mutual funds, mutual fund, commercial banks, investment company, mutual funds market, funds market, socially responsible, stock market, discount brokers, closed-end investment, american banker, closed-end investment trust, banker/thrift institution brokers, mutual fund investment, investment trust company,
Approximate Word count = 5710
Approximate Pages = 23 (250 words per page)

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