The Changing Market of Mutual Funds Introduction Th

Mutual Funds: Definition, Purpose, and Types

A mutual fund is a particular type of investment company. Specifically, a mutual fund is an openend investment company. An openend 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 openend 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 closedend investment trust is a company that sells a specified number of shares in the company to individual investors. The closedend investment trust company is not obligated to issue additio

. . .
ons Deregulation and Monetary Control Act of 1980 was enacted, and this legislation was followed two years later by the complementary Depository Institutions Act of 1982. Both the regulatory structure and the structure of the country's financial system were transformed through the implementation of the two banking decontrol acts. Many, but not all, of the restrictions placed on the type of activities permissible for investment and commercial banks were eliminated. Commercial banks, as an example, could underwrite government, but not corporate, securities issues, and investment banks could provided limited commercial banking services such as checking accounts supported by investment funds. Thus, 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 early1990s, commercial banks began to agitate for a relaxation of restrictions to permit the institutions to enter the brokerage business. 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. The marketing practices of commercial banks in the brokerage
. . .

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, stock market, closedend investment, discount brokers, openend investment, barriers entry, closedend investment trust, banker/thrift institution brokers, mutual fund investment, closedend diversified investment,
Approximate Word count = 5425
Approximate Pages = 22 (250 words per page)

More Essays on The Changing Market of Mutual Funds Introduction Th