One Source Online Mutual Funds Program
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Charles Schwab & Co., Inc. is a member of the New York Stock Exchange that has pioneered on-line investment banking. The brokerage offers a full line of investment vehicles with programs designed for a variety of investor types (Charles Schwab, 1999a, p. 1).Among the many investment vehicles offered by Charles Schwab on-line are mutual funds. A specific mutual funds program offered by Charles Schwab is the "One Source Online" program (Charles Schwab, 1999d, p. 1). This Internet research and analysis addresses the issue of why a program such as the One Source Online program would be attractive to investment clients in comparison with other mutual funds and programs. To address this issue, the Charles Schwab One Source Online program is compared with other mutual funds and programs within the contexts of concerns of investors. 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 o
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ome closed-end investment trust investments are available through the Charles Schwab One Source Online program (Charles Schwab, 1999d, p. 2). This range of investment vehicles in the mutual funds arena is an advantage of the One Source Online program, as many mutual fund brokers and programs do not offer this range of investment vehicles ("Find A Fund," 1999, p. 5).
There are many different types of mutual funds, such as growth funds, diversified funds, balanced funds, money market funds, and so forth. These fund types describe the types of securities held by the investment company. Thus, investors can select a fund that specializes in the types of investment vehicles with which they are comfortable. Another advantages of the Charles Schwab One Source Online program in relation to competitors is that this full-range of mutual fund types is available through the One Source Online program (Charles Schwab, 1999b, p. 1).
In brokerage pricing, the differences are often along the line of retail and institutional specialization. The larger investment banks tend to provide preferential pricing for institutional customers, because of trading volume. In retail brokerage, the larger investment banks maintain higher price margins, but
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Approximate Word count = 1373
Approximate Pages = 5 (250 words per page)
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