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. Do hedge funds invest in private companies?

    Understand how fund liquidity and investment returns as required by investors affect hedge funds' decisions to invest in ... 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 is the difference between a hedge fund and a private equity fund?

    Learn the primary differences between hedge funds and private equity funds, both of which are utilized by high net worth ... 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 >>
  6. 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 >>
Related Articles
  1. Professionals

    Investment Companies

    Investment Companies
  2. Options & Futures

    20 Investments: Closed-End Investment Fund

    What Is It? A closed-end fund is an investment fund that issues a fixed number of shares in an actively managed portfolio of securities. The shares are traded in the market just like stocks, ...
  3. Investing Basics

    How To Invest In Private Companies

    It can be tough to invest in a company that doesn't trade on an exchange, but there are also several advantages.
  4. Professionals

    Open and closed-end funds

    CFA Level 1 - Open and closed-end funds. Learn the differences between open and closed-end funds. Describes the charateristics of these funds and how they are purchased after issue.
  5. Investing Basics

    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 ...
  6. Mutual Funds & ETFs

    Open Your Eyes To Closed-End Funds

    Although less popular than their open-ended counterparts, these investment vehicles are worth a second look.
  7. Investing Basics

    How To Invest In Private Companies

    Owning a private firm means sharing more directly in the underlying firm’s profits.
  8. Financial Advisors

    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.
  9. Active Trading Fundamentals

    Understanding the Accounting of Private Equity Funds

    Read about private equity accounting and how it is different than that of other investment vehicles. The nature of private equity makes a difference.
  10. 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 ...
RELATED TERMS
  1. Closed-End Fund

    A closed-end fund is a publicly traded investment company that ...
  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. Closed-End Management Company

    An investment-management company that sells a limited number ...
  5. Investment Company Institute - ICI

    Founded in 1940, the Investment Company Institute, based in Washington, ...
  6. Investment Company Act Of 1940

    Created in 1940 through an act of Congress, this piece of legislation ...

You May Also Like

Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  4. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  5. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  6. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
Trading Center