A:

a) closed-end funds.

b)
private investment funds.

c)
mutual funds.

d)
unit investment trusts.


Answer: B.

Also called hedge funds, these operate in a private, sophisticated market, although they are structurally similar to regulated investment companies.

RELATED FAQS
  1. If a client has a very low risk tolerance, all of the following might be suitable ...

    If a client has a very low risk tolerance, all of the following might be suitable investments EXCEPT: a. Growth stock fundsb. ... Read Answer >>
  2. How do I purchase shares of a closed-end investment?

    Understand the difference between open-end and closed-end funds, and learn how an investor can purchase shares in a closed-end ... Read Answer >>
  3. What risks are associated with a closed end investment?

    Explore the characteristics of closed-end funds as compared to open-end funds, and understand the risks associated with investing ... Read Answer >>
  4. What are the primary differences between a closed end investment and an open end ...

    Learn what the primary differences are between open-end investments and closed-end investments, and the implications for ... Read Answer >>
  5. Can mutual funds invest in private equity?

    Learn about the mutual funds that invest in private equity by buying shares of investment holdings firms that specialize ... Read Answer >>
Related Articles
  1. Investing

    What's a Closed-End Fund?

    A closed-end fund is a mutual fund that has an initial offering (IPO) of shares, and once those shares are sold, no additional shares are issued. Since it is a public offering, closed-end funds ...
  2. Investing

    What Are the Advantages of Closed-End Funds?

    Often forgotten, closed-end funds are publicly traded and can be found on the secondary market.
  3. Investing

    Closed-End Vs. Open-End Funds

    Open-end products may be a safer choice than closed-end, but closed-end funds might produce a better return.
  4. Investing

    Open Your Eyes To Closed-End Funds

    Although less popular than their open-ended counterparts, these investment vehicles are worth a second look.
  5. Financial Advisor

    Why You Should Consider These Closed-End Funds

    Advisors looking to recommend closed-end funds to clients might want to consider ones that have withstood the test of time. Here are a few examples.
  6. Investing

    Closed-End Vs Open-End Funds

    Much like an individual’s wardrobe, many portfolios are collections of separate items. They combine stocks and bonds and other investments into one product.
  7. Investing

    An Introduction To Closed-End Mutual Funds

    If you're looking to generate income for your investments, look no further.
  8. Investing

    Understanding a Hedge Fund Manager's Worth

    Hedge funds pool investors’ money much like mutual funds. However, they are not as closely regulated as mutual funds, and although their investments may include stocks, bonds and other traditional ...
  9. Investing

    Side-By-Side Management May Favor Hedge Over Mutual Funds

    Having your firm handle both investments can spell disaster for your returns.
  10. Investing

    A Brief History Of The Mutual Fund

    This popular investment vehicle has seen its share of ups and downs, successes and scandals. Read all about it!
RELATED TERMS
  1. Investment Company Institute - ICI

    Founded in 1940, the Investment Company Institute, based in Washington, ...
  2. Investment Company

    A corporation or trust engaged in the business of investing the ...
  3. Fund Company

    A commonly used term to describe an investment company, which ...
  4. Investment Fund

    A supply of capital belonging to numerous investors that is used ...
  5. Global Fund

    A type of mutual fund, closed-end fund or exchange-traded fund ...
  6. Defined Portfolio

    An investment trust that invests in a predefined portfolio of ...
Hot Definitions
  1. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
  2. Quantitative Easing

    An unconventional monetary policy in which a central bank purchases private sector financial assets in order to lower interest ...
  3. Risk Averse

    A description of an investor who, when faced with two investments with a similar expected return (but different risks), will ...
  4. Indirect Tax

    A tax that increases the price of a good so that consumers are actually paying the tax by paying more for the products. An ...
  5. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
  6. Beta

    Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. ...
Trading Center